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

  1. Request a deposit upfront on orders.
  2. 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.
  3. Ensure clients have received their invoices and statements on time.
  4. Flag clients that are not paying, and implement late payment fees.
  5. Halt supply of your goods or services if payment has not been received.

Author: Nettie Kruger, Senior Debtors Controller – GEOTAB AFRICA

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