1. Implement a Credit Policy for the business or review the current credit policy to ensure it's right and is working as good as it could be.
Many businesses don't have a credit policy and if that applies to you and your business then you should really implement one.
If you have one then you should regularly review it and ensure it is working for you.
A credit policy is a set of rules and criteria that you should follow when taking on new customers and considering extending them credit.
2. Ensure you have good / solid paperwork including terms and conditions as to ensure you are covered for Kate or non payers.
3. If extending credit ensure you use the minimum days of credit that you can get away with, to ensure you don't struggle with cash flow. Don't just put invoices on 30 days as normal, try 7 or 14 days and see what they think. Paying late by 30 days on a 7 day invoice is far better than being 30 days late on a 30 day invoice.
4. Rather than offering credit try taking payment upfront. This sounds like a simple idea but some sales people get on to bad habits and just offer payment terms as standard but on many of these occasions business would be happy to pay upfront on company credit cards, so try and get sales guys to change their ways and adapt to taking payments online or as part of cash collection implement processes of trying to take the payments upfront after the sales or orders have been completed.
5. Implement good solid credit control processes and procedures including wherever possible the use of automated systems to allow you to free up more time to get on the phones and collect any money due.
Business credit reports makes a good impression when you go for business loans. If you have good business credit report than you have better chance to get business loans. And tips you mention above is impress me.
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