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Old 1st September 2006, 02:55 AM   #2
TheIntroducer
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Join Date: Jul 2006
Posts: 25
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Third party collection eats into your margin.

There are different types of incoming cash flow management. [a] Your terms in days [b] offering settlement discount (e.g. pay in 10 days and we give you 2.5% off the invoice amount [c] imposing a credit limit (if they have a balance of say 500, they can't re-order.

But I think the golden rule of controlling debtors is "KEEP ON TOP OF IT".

Set yourself aside a few hours each week, on the same day and at the same time and make telephone calls to people who are over their terms. No one likes doing it, particularly if you are calling 'good' customers, but I find it the most effective way

Good Luck

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