Minimize Collections with a solid Credit Plan.

A continuing learning series from Florida Debt Collection Attorneys. Marcadis Singer, PA, to help minimize collections by creating a great credit plan.

Collections and Credit Training

8.  Watch Your Cash Flow

There are two things you must have to offer payment terms.  Cash is the lifeblood of virtually every company.   You must have adequate margins in order to afford the extension of credit, and you need excellent availability to working capital for those times when customer payments don’t keep pace with outgoing expenses and clients go into collections.   Managing receivables goes hand in hand with minding the store and managing Cash Flow.

9.  Watch who you owe money to.

It is not enough to track collections,  you must also watch the Accounts Payable side of the house, and know who YOU owe money to.  If you are expecting others to pay you, it is incumbent on you to pay money that you owe.  Understand the outbound funds so that you have the cash reserves from your customers and clients.

 Next in our Credit and Collections Tutorial

Tomorrow we speak to a new topic on offering credit to customers, establishing a good working Credit Policy.   We have spoken on this topic before, and believe it is imperative to have a clear policy in place for the extension of credit to your clients.  Having a a clearly articulated Credit Policy sets expectations up front with your clients.  Not Having a clearly defined and followed Credit Policy can significantly impact your ability to collect, especially when credit goes bad, and you need to involve collection attorneys.

Close Popup

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Close Popup
Share This