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7 ways to reduce debtor days

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Our FREE guide on reducing debtor days covers the following areas

1. The Credit Control Process

With a new tax year upon us, it's time for SMEs to make their own money-saving resolutions and examine the everyday practices that might be restricting their cashflow. One of the most crucial of these is the time that passes between receiving the money for the goods or services you have sold, or the 'debtor days', as this period of time is known. We start our guide to reducing debtor days with a look at the benefits of improving your credit control process.

2. Early Settlement Discounts

As days pass without receiving payments from your clients and customers, your cashflow will inevitably be stifled. It’s therefore wise to encourage early payments, so could early settlement discounts be a viable solution for you?

3. Credit Reduction

You don't want to rule over your customers with an iron fist, but could it be that you are showing them a little too much credit leeway? Part 3 of our guide addresses ways to cut the cost of credit by reducing it.

4. On-Stop Accounts

As the saying goes, you can't get blood from a stone, but businesses can be frustrated or even crippled if their customers cannot or will not pay. On-stop accounts might be a last resort but, as a business owner, it's vital that you understand them.

5. Pro Forma / Upfront Payments

There's nothing as kind on your cashflow as receiving immediate payment for your products and services, but can demanding money up front be a dangerous game? The next instalment of our guide to reducing debtor days explores the roles of pro forma and upfront payments.

6. Credit Checking

Understanding your clients and customers is crucial, and a little bit of research can go a long way. With the help of Part 6 of our guide to slashing debtor days, make sure that credit checking leaves you suitably clued up.

7. Payment Methods

Now that you've sold your services and settled on a price, the only thing left to consider is how you will receive your payment. We finish off our guide with a look at payment methods and how your options can affect the length of your debtor days.

FREE Guide on 7 Ways to Reduce Debtor Days

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