Probably one of the less sexy part of entrepreneurship is to collect receivables. I don’t know one single entrepreneur who likes this task.
How to get money on time ? How to have discipline enough to follow the payments of clients ? What to do to motivate the clients to pay ?
Many managers simply process payment reminders when they need cash and call the debtor under pressure only.
Obviously, it’s not the right way to operate. It’s the best way to transform overdue debt in lost money and to work for banks (how many interest are paid because of the clients)?
The General Manager can opt for other solutions: COD (cash-on-delivery), factoring and outsourcing to debt collector. While the first is not possible for many business, the second is expensive and the third doesn’t fit for all businesses.
My suggestion is to develop a process inside your company which will be easy to manage. Since the process is well-established, you will see the money coming in effortless. This solution is probably the less expensive and you will keep the control of your customer’s relationship.
Any help to implement this process ? Just contact me.