Money is the lifeblood of any organization. Without it your company cannot exist. Like the heart needs blood, the company demands cash. Having a good credit policy and following your policy will decide the well being of your cash flow. Collecting at the time of service carries the least amount of risk and greatest cash flow answer. Nevertheless, this is not constantly the case so your capability to collect data on your client and adhere to-up on accounts that are not paid within your credit terms is crucial. The much less data you have the tougher it is to adhere to-up. Your ability to effectively communicate in a timely manner will figure out when and if you get paid. If you haven’t been paid within 90-120 days your chances of collecting have reduced dramatically. That is since the older an account gets the less collectable it becomes.
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