Cash flow problems most commonly originate from customers not paying their bills within your stated terms of trade. If you would like to increase your cash flow and have a better relationship with your customers then your business needs correctly written, legally binding and enforceable Terms of Trade.
In our office we have the “Smiling Lawyer” test on all documents. Basically, we look at all our customer’s documents as if we were the lawyer defending a claim. Now that lawyer will either have a concerned look or be smiling. If he thinks he can’t win he will frown, if the paperwork has legal weakness he will start smiling.
Check your paperwork and if you are not sure, get an expert opinion. If your business is in Perth, Welshpool, Kewdale, Gosnell, Victoria Park then give me a call on 0468 347 680.
Good credit management starts from a protect and collect strategy. Protect your business with the right documentation, that is properly implemented, and you will be able to collect debt.