Slow collection of debtors can impact your business in a very negative way. It can result in delayed payments to creditors, retrenchments or ultimately closing the company’s doors.
5 Ways to Reduce Debtors to your Business
- Request a deposit upfront on orders.
- Ensure you are in control of all your debtors by regularly following up on payments. Do not to let the client exceeded 60 days and over on late payments.
- Ensure clients have received their invoices and statements on time.
- Flag clients that are not paying, and implement late payment fees.
- Halt supply of your goods or services if payment has not been received.
Author: Nettie Kruger, Senior Debtors Controller – GEOTAB AFRICA