Improving your businesses cash flow
Throughout the coming months Inksmoor will be giving you valuable business tips to help improve your businesses cash flow.
Establish credit control procedures.
Setting up a credit control procedures is the most important part of maximising business cash flow. If your business gives its clients credit terms, you need to ensure your clients pay on time. Ignoring any credit control procedure can lead to clients paying “as and when” they feel they need to and ultimately bad debt; this can have a catastrophic impact on cash flow.
Many businesses through no fault of their own tend to ignore credit control because of the following reasons;
- Lack of time
- Lack of knowledge
- Rapid business growth
- Ignoring the need for credit control
- Owner managed businesses struggling to separate sales and credit control
- Cost of employing an in house credit controller
Businesses become focused on selling their products / services and they forget, or run out of time collecting their due invoices. This then affects their business cash flow and becomes a vicious cycle.
Many SME’s do not have the time or expertise to implement such procedures within a business. Many therefore look to outsourcing as a way of proactively collecting their invoices and overdue debts.
Outsourcing Credit Control has many benefits not to mention being cost effective. Many online pharmacy companies do not need a full-time credit controller and therefore the job is pushed onto someone who really does not want to do it. Outsourcing brings expertise, full Monday to Friday coverage, separation between sales and credit control as well as the correct expertise, credit procedures and personnel.
If we can help you setting your credit control procedures and reviewing your current situation or if you are looking to outsource please call us on 0808 168 8085 or [email protected]