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Cash flow management: 5 tips to get your money back

As a business owner, you should be prepared to deal with clients who have outstanding debts. In the present scenario, a large number of business owners are experiencing cash flow problems and according to statistics, if the debt is overdue by a year, then the chances of it being paid is only 24% whereas, if the debt is overdue by only a month, then the chances of it getting paid increases by 93.8%.

Businesses require a sufficient debt collection recovery process for collecting debts quickly and effectively and improving cash flow management.

In this post, we will provide five useful tips to get your money quickly and professionally.


1 Make sure that your terms are agreed upon

You need to place an early emphasis in the relationship with your clients and have your contract signed by all of them. This will help you create a legally binding agreement that will set responsibilities and clear expectations for all involved from the beginning. You need to outline your terms because if you don’t, you will be left at the mercy of your clients’ payment process, which can be instant or overdue. Not specifying your terms could affect your ability to maintain strong cash flow, and it could make it challenging to recover money owed. Should the matter escalate, you can always take legal actions against the customer organisation or employ a professional debt collector.


2 Call the customer regularly

Instead of just sending written debt collection notices, you can call the client regularly as a reminder. This is significantly more effective than any other communication medium as you are making direct communication with the client, and you can follow up on what they say regarding the matter. For example, if the client says they haven’t received an invoice from your company, email them a copy of your invoice while on call and confirm they have received it there ang then. This will establish that you have done the work from your side, and it is up to the client to how they respond.

In case, if the debt is overdue, ask the client when you can expect the payment and before closing the call, confirm the payment method and payment date. This will favourably uphold a promise from the client, and you will have a verbal proof of when you can expect the payment. Most corporate calls are recorded for numerous reasons, and you should do the same when asking payment. The recordings can help in the future.


3 Maintain the cool

It is easy to allow your frustrations and emotions to get the better of you when the clients don’t pay their bills. But you are advised to keep your emotions in check as it will help you think clearly and work out the best solution for getting your money back on time.

In a situation where the debtor says that they are facing some level of financial hardship, instead of taking any action, you could come up with a payment plan option that allows the debtor to pay your money under less pressure.


4 Letter of Demand

If your phone calls haven’t been positive and your payments are still outstanding, consider sending out a Letter of Demand to the client. The Demand Letter must state your request to receive payments for the products or services you have rendered, giving details of the specific situation leading to the letter. You need to state what actions you will take if the payment is not received within the given timeframe and set a deadline for payment. If your payment is long overdue, you may consider submitting a legal notice stating that if the payment is not made, the client will be dragged to the court.


5 Employ a debt collection agency

If none of those mentioned above options worked, you could engage a professional debt collection agency. It is your last arrow in the quiver. A professional debt collection agency will collect all the required information on your client before recovering the money owing to you. They abide by ethical and professional standards when dealing with debtors. They can help you recover your money. An organisation such as Boston Commercial Services specialise in the effective collection and repayment of customer debts.

When you are availing your services, ensure that your expectations are set, and your conditions are agreed upon. You may also ask the client to make an advance payment if possible


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realclicks 8:37 am
  • I have worked closely with Boston Commercial Services for over twenty years across four different companies and would not work with anyone else in regards to helping me with my outstanding accounts. Whenever I have started a new role, the first thing I am asked is, “How would you go about cleaning up our accounts receivable ledger?” My answer is always the same – “The first thing we need to do is call Boston Commercial Services”.

    Voytek Bradford

    Freedom Foods Group Limited (National Credit Manager)

  • 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.

    Peter Brueckner

    Powerhouse Logistics Pty Ltd (CEO)

  • 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.

    Ryan Meldrum

    Former CEO

  • I have been using the services of The Boston Group and their legal entity for over 11 years. During this time I have found their service to be impeccable, delivered with the utmost professionalism and integrity. The vast majority of cases that I have placed with Boston were far from straightforward, requiring legal acumen and delicate handling. Having used all methods available without success to procure payment, I confidently placed these matters into their safe hands. In all instances a successful outcome was achieved.

    Mark Parish

    Credit Manager

  • SNP Security has had the pleasure of working with Boston Commercial Services for the past 11 years. Boston has played an integral part in the continuing success of SNP Security’s low DSO’s, 90 Day % Debt & of course Bad Debts Written Off.

    Amanda Griffiths

    National Administration Manager

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