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Tips from Debt Recovery Agency: How To Manage Cash Flow in Three Categories

Tips from debt recovery agency

When you're running a business, cash flow always to be the king, and it has never been more important than the context of the environment we find ourselves in. If you’re heavily impacted by COVID-19 pandemic, or spending more time juggling cash than running your business, don't worry, as a professional debt recovery agency, we have organized 14 tips among three categories for you.

So here are the tips: • Supplier level: a) Review your expenses, remove or reduce non-essential expenses b) Look at staffing arrangements c) Shop around for suppliers, make a comparison d) Discuss with banks for finance costs e) Speak with your landlord (Victorian Small Business Commission could help if you are in small business) f) Consider options for outsourcing non-core or support activities

• Stock level: g) It does not mean keep low level of stocks, but rather ensuring that stocks are held for the shortest possible time h) Get stocks delivered to customers instead of warehouse if possible, to reduce warehousing costs

• Customer level: i) Provide incentives to pay early j) Review customers record for cash/credit sales, minimising bad debts, get all cash collected that can be collected k) Identify slow paying customers and make contact early to discuss l) Have a policy in place to stop supplying a customer until debts are cleared m) Use professional debt collector when needed n) Remember a good customer is only one that pays. If you are not collecting the cash from your customers, then your organization is funding your customers as well as your own.

Let us know if you need any support in cashflow forecasting, and/or recover outstanding receivables by a professional debt collection agency, we always here to help!

Need more advice about debt collection? Read our blog “4 Most Useful Tips for Managing Credit Customers During Pandemic”.

Consider our “Commercial Debt Collection” service.

Learn more about “Clients not paying invoices”.


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