It is pretty natural of us to focus on the present and not the future regardless of whatever situation where in. And so, because of this short sighted decision making process, there are considerably huge problems that come in to play in future. One such issue is getting money from your debtors. So here are some mistakes you should know of when it comes to these debtors, to avoid suffering from such bad decisions.
Not making the right calls
When doing business, it is in fact very common that businesses offer their products or services on credit to clients. However, this practice has also become a big problem for them having to chase after Australian security company to get all that they are supposed to, back. you can’t obviously run a business without offering a credit option but that shouldn’t mean you should be compromising at every turn with every client. Instead offer this practice only to customers that you are certain would pay back for sure and not to just any random person! So make the right calls and do your homework on who you are dealing with, where they stand and whatnot.
Letting the problem grow
As a business it is necessary that you have funds or cash to run your day to day activities and future projects planned. This money is all that you earn by dealing with clients. And so, it is natural that you give them the freedom to make payments when they themselves have cash to pay back. For this you might give them a deadline too. However, don’t compromise after that. If the client has failed to make payments once the deadline has passed, then start taking action then and there. Postponing and being more lenient with the client would only bring you bad debts. So, avoid it by solving the problem then and there and not allowing it to grow bigger, especially if you don’t want to bear the extra costs cash collection services in Perth would charge you with!
Getting all that you owe from your clients should be a big priority that shouldn’t be second to selling more. As much as it is necessary to make more sales, it is even more important that you collect the money that you should be getting. However most businesses seem to forget this and prioritize making more sales over collection. At the end when they look back at the physical cash that they own, it would be nothing! This makes running even day to day activities a huge challenge. So always be mindful of the funds that should be coming in!
Avoid the above mistakes and ensure that your company has a good cash inflow to function normally on a daily basis!