Category: General Advices
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Credit Control KPIs: What to Track and Why It’s Important
Effective credit control is crucial for cash flow and timely payments. Monitoring key performance indicators such as Days Sales Outstanding, Average Payment Time, and Bad Debt Ratio provides insights into credit management. These metrics help businesses mitigate financial risks, optimize strategies, and strengthen customer relationships, ensuring better financial stability.
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Building Strong Relationships with Customers to Improve Payment Cycles
Getting paid on time is one of the biggest challenges businesses face, but it doesn’t always have to be a battle. While policies, reminders, and automation tools can help, one of the most effective ways to improve payment cycles is by building strong relationships with your customers. When trust and open communication are at the…
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How to Evaluate Customer Creditworthiness Before Extending Credit
Extending credit to customers can be a great way to foster long-term business relationships and drive sales. However, failing to assess a customer’s creditworthiness properly can lead to late payments, bad debt, and cash flow issues. Evaluating creditworthiness before extending credit is essential to minimizing financial risk while maintaining customer satisfaction. Understanding the Importance of…
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The Pros and Cons of Outsourcing Your Credit Control
Effectively managing credit control is vital for cash flow, yet in-house handling can be challenging. Outsourcing offers efficiency and expertise but may compromise customer relationships and incur costs. Businesses must assess their specific needs, balancing efficiency, customer service, and expenses to determine whether outsourcing or in-house control is preferable.
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The Impact of Late Payments on Cash Flow and How to Prevent Them
Late payments can be a real headache for businesses, no matter their size. They mess with cash flow, make operations more complicated, and can even put a strain on financial health. Let’s take a look at how late payments impact cash flow and what you can do to prevent them. How Late Payments Affect Cash…
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How to Handle Disputes in Accounts Receivable Efficiently
Disputes in accounts receivable are a reality for most businesses. Whether it’s an incorrect invoice, confusion over payment terms, or dissatisfaction with a product or service, these issues can delay cash flow and strain relationships with clients. Resolving disputes efficiently isn’t just about fixing problems—it’s about preserving trust and keeping operations running smoothly. Clear and…
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How to Reduce Payment Delays: Strategies for Better Accounts Receivable Management
Late payments can disrupt your business operations, strain cash flow, and hinder growth. While occasional delays are inevitable, they don’t have to be a constant challenge. Effective accounts receivable (AR) management is about creating processes that encourage timely payments while maintaining strong client relationships. By combining clear communication, strategic planning, and smart use of technology,…
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Top 10 Best Practices for Effective Credit Control
Effective credit control is essential for businesses to maintain cash flow and mitigate financial risks. Key strategies include establishing clear credit terms, assessing customer creditworthiness, automating tasks, setting sensible credit limits, maintaining accurate records, invoicing promptly, following up on payments, resolving disputes quickly, offering easy payment options, and regularly reviewing processes to enhance efficiency.
Credit Control Club 