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How to Attain Your Credit and Collection Goals

Credit and collections is a process most companies have to deal with regularly. What you want out of it is to turn invoices into cash while adhering to the terms of payment. This is however not an easy task. For most companies, to achieve a smaller accounts receivable and increased cash flow, the points of gain must be smaller and incremental, but with an overall consequence of achieving this stated objective.

In order to mitigate the hassle, the best way to do this is to compartmentalise the problem and turn it into smaller points of return on your way to combat the issue in its broader scope. The following are the smaller building blocks that will build your monumental success in attaining your credit and collections goals.

 

Facilitating invoice payment

It is imperative that you send invoices promptly for a customer to receive it, have it approved for payment and as a result, pay you on time. You should help move this process along since they may have to go through several steps as well before settling it. An excellent way to do this is to establish a credit and collections management system with invoices tailored to the preferred format of the customers.

 

Ameliorate management of accounts receivable

This is an uphill task where the inherent goal is twofold; to complete past sales as well as stimulate repeat sales. Returning customers have a value that cannot be understated, being inexpensive and probably a constant income source. Therefore, utmost care must be taken to apply nothing but the best practices to make sure you get your money back but also maintain a healthy relationship with returning customers as well as foster the growth of others.

 

Grasping the process of credit/sales approval

The aim of this procedure is to maximise your opportunities for sales while making sure that you employ a tactful approach to credit risk-taking. Case in point, your accounts receivable is unlikely to improve if you are making sales with bad customers. Irrespective of the number of customers you may have you will barely collect any cash. You can make sure your sales team and credit managers are on the same page, and this will be the first step to a durable and effective credit/sales approval process. Acquainting both teams with the policy and procedures in the other’s department will go a long way in its mastery.

 

Frequently monitoring performance

Analysing your current standing in relation to your desired result is a must-do. Setting in place credit goals and then tracking your progress is a crucial part of your strategy for reaching that broader objective. This is to identify shortcomings and strengths and adjust accordingly. You can use common metrics that will aid in this evaluation process.

Maximising these small incremental areas will fix the greater problem, while bringing cause for celebration of small achievements, making for an effective and satisfying credit and collections process.

 

Read Also:

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  • I have known the principal of the BOSTON Group (Derryn HARRISON) as well as key staff members (including Ben GOWER) for well over 2 decades and have been using their professional services for myself as well as for Powerhouse Logistics Pty. Ltd. on a regular basis, not only in Sydney but on a national basis.

    At all times BOSTON have been extremely pro-active, attentive, courteous and professional with all matters we threw at them. Their advice has always been extremely sound and commercial and I find them to be a "breath of fresh air" within the legal fraternity and have no hesitation whatsoever to highly recommend them.

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  • Expect A Star has worked with The Boston Group for 10 years. In this time we have appreciated the ongoing support of Boston for all of our collection and legal requirements. Like most businesses cashflow is critical to ongoing success and growth, with Boston we have found a partner who are an extension of our business and play a key part in our cashflow management. The Boston Group bring a level of expertise to our business which is valuable and coupled with their excellent customer service we look forward to continuing to work with them for many years to come.

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Boston Commercial Services prides itself in offering specialised, professional services, through a highly experienced team of debt collector, with personalised client attention.