Now, it appears that for the majority of enterprises, the topic or element of debt or receivables is one that cannot be avoided. I’m talking about debt in the aspect of monies customers or clients owe to the business, not the other way round with the business owing another entity. Why debtors or receivables? The answer is simple. The unavailability of ready cash to pay for goods and services should not ideally stop business. Sales of products and services should continue under normal circumstances to people and entities that are interested in them, and are willing to pay for them in the near future. Gone are the days when you needed to suffer until you have saved enough money (either in a box in your house or in your bank account), before you could have the courage to go and buy something. Buying on credit is also a tool used by some enterprises to manage their cash flow or liquidity. It’s normal in today’s world.
However, do enterprises actually manage very well their debtors or receivables? Do entrepreneurs know how to make the best of their receivables? What are the best practices regarding management of debtors and receivables that an enterprise should adopt? We could turn this question upside down and down upside but the whole thing lies around the best approaches to managing debtors or receivables. Do you understand me? So, today I want to write about this. Today I’m going to give you 7 tips to ensure the best management of debtors or receivables in your business. Again, as I always say, it’s a free world. If you are already practicing these principles and you think you will get no value from this blog, simply run. Ok? It’s better than reading while complaining about how I ‘wasted’ my time. I know that there are thousands (probably millions) of entrepreneurs out there that need these materials.
So, what are these points that can guarantee you the best from your receivables or debtors?
And now, as I move to a swift conclusion of this blog (because I’ve written quite a lot today), I would like to mention that management of receivables is something not to be ignored. It pretty much does not matter what the size of your business is, as long as you sell or render service on credit. If you ignore this, your business might ignore you in due course!
With best wishes for a successful receivables management in your enterprises, always
The Wise Entrepreneur