This is clearly stating the obvious but how many customers do you have that pay on time? It is important to explain your payment terms to customers from the very start of the relationship.
If you are receiving late payments this can be detrimental to your business in the following ways:
- It can cause cash flow problems
- It can increase your finance costs
- In turn this will reduce profits
- It can take up the time of your staff chasing late paying customers
It is not easy to get prompt payment from customers but through educating them and getting them in the habit of paying on time you can improve things.
An outsourced credit control service along with a factoring facility could be just what you are looking for.
The finance provided by the factoring company can help smooth cash flow while the credit control service will be applied methodically and professionally.