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 Good credit management is an important business strategy to maintain cash flow and stable finances. A cornerstone of managing credit is not only making sure an invoice gets paid, but gets paid on time. Before a debt recovery process commences, which may delay payment and damage a relationship with a customer, it is worthwhile for businesses to use processes to avoid customer debt in the first place. Prepare customers Making sure the customers understand their payment terms from the start is the first step in training them to keep track of outstanding invoices and payment due dates. Keep detailed records Businesses should keep all customer records such as payment term agreements, customer limits and outstanding sales. Follow up regularly Starting a ‘follow up’ procedure once a payment becomes overdue can help speed up the process. It is also very important to know exactly who to speak to about payment matters. Implement payment-in-full Most businesses adopt this policy in regards to pa

  Without profits and positive cash flow, a business is going to struggle to survive. This is why cash flow strategies should be taken seriously. Aim for long term financial stability When setting finance and cash flow goals for the business it is important to aim for long term stability.  Businesses should realistically assess how and when it wants to reach its long term goals. Don’t forget to consider customers who allow purchases on credit as it will help in forecasting how much cash is coming into the business and whether it will be enough to cover expenses. Profit first and growth later Businesses should aim to increase profits in the present and use them to grow the business in the future. Approaching it the other way around isn’t always a good idea, especially for start-up companies. Be aware of timing Businesses need to be aware of exactly when money is coming in and when it is going out. Although owners may not be directly responsible for the accounting side of the business, t