Business design
Thus the practices of delaying payments are primarily the result of a corporate culture that has developed not only because of economic factors but also to poor payment practices prevailing in commercial relationships.
To combat corporate defaults, the central idea is to have a good billing department to be responsible for monitoring the accounts receivable and accelerate cash inflow in the treasury.
But keep in mind that debt collection is not a function that can be done alone, but is an activity that requires time and resources.
Making a comparison can say that debt collection is like milking cows. Client accounts are like a cow’s udders, if the farmer is limited to putting a bucket under the breast of the animal and wait for falling milk alone surely will not get any fluid. But if daily milking of cows, can get the liquid that is the essence of the business. Of course to do so should spend daily time and effort enough for milking. Collection management is based on the same principle: do not wait passively for the client to make the payments, but actively milking receivables to extract juice.
Must also bear in mind that customer balances are not like fine wines rearing, in the sense that letting it sit for some time in barrels, is an increased quality of the wines, produce excellent wines and make reservation to raise its market value on the contrary the overdue bills are like the classic yogurt (not pasteurized), have a very short life cycle and if not paid immediately are spoiled forever.
As the recovery of unpaid debts, it should be noted that generally, the claim payment to the debtor, is considered one of the toughest jobs you can do in the company. For many people go to collect a debt often causes a sensation of pregnancy (usually more embarrassing for the individual who wants to charge you for the debtor).
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