086 23 23 525 info@accountsplus.ie

Cash collection is often an an issue for businesses.  It’s very important to find a working way to be able to implement cash collection since giving credit is at times unavoidable in many businesses. Over time, I have accumulated a number of tips you can use to avoid bad debts and improve cash collection.

There are so many simple things that make a difference if you want to improve on credit collection. Here is a list of tips:

  1. Think before you extend any credit.
    Decide if you want to give the customer credit and how much credit you want to give.
    Set limits – on both time and on amount of credit.
    Then if they don’t with within the time or if they have already used up their credit allowance, don’t give anymore credit.
  2. If you are in a sector where Credit is the norm, offer discounts to people who pay upfront – try to make it an attractive option.
  3. If the amount of credit asked for is big, do a credit check.
    Think, how much would it be worth now to know if this customer has a good standing record.
    If the cost of a credit report is less than that, get the credit report.
  4. Don’t give credit to someone who is already over their limit.
  5. Chase the money when it becomes due.
    In my experience, those who shout loudest get paid.
    So be methodical and keep a log of calls, letters etc
  6. Through it all, be Consistent – if you make a decision, stick to it.

If you have any comments on this article or if there are any areas you would like to address, please do let me know.

Best Wishes