In business you get what you want by giving other people what they want. All you need to do – listen well!
Let’s take a look at some signs and symptoms that may be early indicators of bad debt problems. Observing these early signs and investigating courses of the following symptoms, may save you from unwanted expenses in money and time. Additionally, you can avoid the accompanying related problems down the line. Be watchful for the following signs, and be especially vigilant if you see a cluster of signs in your business. (more…)
“Diligence is the mother of good fortune. ”? Benjamin Disraeli
Sound account receivable processes are a part of an effective bad debt risk management system. Standard processes and procedures would allow your business to first manage risk rather than bad debt. Remember:
• Billing and sending invoices out timely, is the 1st MUST of every business.
• Sending proactively regular Account Statement is a 2nd important step!
Here are the benefits of sending out accounts statements:
“Too many people spend money they haven’t earned to buy things they don’t want to impress people they don’t like” – Will Smith
The Holiday Season tends to lure us all into getting into more spending and debt. Big-item buying and unplanned spending is as bad for personal as it is for business finances. Festive Season has the magic of making us all a bit merrier and light-handed when it comes to shopping, parties and Christmas gifts, but most of the time the headache from unnecessary debt comes “the morning after”.
No matter how generous and ecstatic you feel, think twice before putting another item in your Christmas shopping cart. You can’t avoid Christmas spending, but you can surely avoid putting yourself in a financial predicament that could lead to cash flow problems due to more debt as you start the New Year. (more…)
“Diligence is the mother of good fortune. ” – Benjamin Disraeli
The best thing you can do for your business cash flow is to have in place an effective bad debt risk management policies and procedures. This would allow you to first manage risk rather than bad debt.
It is much easier to be proactive by implementing credit safeguards like bad debt risk management procedures rather than having to deal with it once it has reached the bad debt stage – often this is already too late for a large percentage of debt to be collected. (more…)
“A man is usually more careful of his money than of his principles” – Oliver Wendell Holmes
If you’re a business owner or someone who is involved in business accounting, you know how hectic the last month of the financial year could be. In Australia, June is the month when huge things happen in accounts departments: businesses have a hard, long look at the numbers, cash collections and expenses, missed/or met budgets, profits and losses. June is for many businesses month with large cash collections (more…)
‘Do not wait; the time will never be ‘just right.’ Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.’ – Napoleon Hill
There is no better time to crash change your financial philosophy and habits, than when you are already in debt. For some reason, a real crisis is the best push to motivate us to change our old ways and habits to avoid the same pain.
“Customer service is not a department, it’s an attitude!” – Unknown
This is the 2nd part of the article, read our first blog post as an introduction…
A good debt collector knows that the “Carrot and Stick” approach also works with customers. So, how does this technique work in debt collecting?
The previous post was about the “Carrot”.
Now, the “Stick”: (more…)
“Being on par in terms of price and quality only gets you into the game. Service wins the game.’ – Tony Alessandra
If you want to make things happen the ability to motivate yourself and others is a crucial skill. Smart businesses use motivation to get results in their debt collecting. Motivation requires a delicate balance of communication, policy and incentives.
At the same time, if you want your customers to pay up consistently and on time, you have to have the ability and techniques to make them want to avoid the negative consequences if they do not pay debt on time. (more…)
Have a look at this interesting video about how to get out of debt. In this case it is Credit Card Debt, but the same kind of dilemma is involved in any other kind of financial debt out there.
Suze Orman is a well known and highly respected financial advisor. She knows MONEY.
In this video she is talking about getting you a financial first aid! When you get yourself in a situation of financial exhaustion, the first step is to get some oxygen (some breathing time given by debt specialists / agencies).
Getting debt agencies or other 3rd party financial specialists to help you is your first aid ONLY ! (more…)
Did you know that 85% of new small businesses close down in the first year of operation!
According to a report conducted in an issue of USA Today, the statistical failure rate of small businesses in America is staggering.