cashflow Archives - Submit Articles https://www.submit-articles.net/tag/cashflow/ Submit Articles and Find Free Articles Thu, 13 Aug 2009 17:26:06 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://www.submit-articles.net/wp-content/uploads/2020/09/cropped-favicon-512x512-2-32x32.png cashflow Archives - Submit Articles https://www.submit-articles.net/tag/cashflow/ 32 32 A Guide to Business Debt Recovery https://www.submit-articles.net/a-guide-to-business-debt-recovery/ Thu, 13 Aug 2009 17:26:06 +0000 https://www.submit-articles.net/?p=364 Debt Recovery seems to be a new phrase that I am hearing everywhere these days. When economic times are good most business owners don\'t worry unduly about money owing and tend to let outstanding debts pass without too much concern because money is always flowing into the cash register and sales are the thing to […]

The post A Guide to Business Debt Recovery appeared first on Submit Articles.

]]> Debt Recovery seems to be a new phrase that I am hearing everywhere these days.
When economic times are good most business owners don\'t worry unduly about money owing and tend to let outstanding debts pass without too much concern because money is always flowing into the cash register and sales are the thing to concentrate on. Now that the economic climate has changed many businesses are starting to discover the importance of a healthy cash flow and are now realising what a drain bad debts can be on the business.

For many business owners this is the first time they have faced a recession, or a business downturn, and the world of debt collection and debt recovery is unknown territory for them. Many don\'t know where to start, when to call in a debt collection firm, or even what their legal standing is regarding debt recovery.

The first thing that most people discover is that they don\'t like debt recovery, they don\'t like making THE phone call to a customer with an outstanding debt, and they definitely don\'t like hearing all the excuses as to why they are not going to be paid in the near future. Most businesses have very little success with handling their own debt recovery, mainly because of the length of time they take to start trying to collect an outstanding debt and also because of the methods they use.

Research has shown that the success in collecting a debt is proportional to the time taken to initiate debt recovery measures. This means that the longer you put off trying to collect a debt, the less likely you are of succeeding. This is particularly true at the moment when the number of businesses failing is at an all time high.

Think of it this way. When your customer purchased a product of you, he had every intention of paying the account but between the purchase time and payment time his ability to pay has decreased for some reason. His payment ability will most likely continue to decline so your chance of getting paid next month is less than it is this month.

The second thing to consider is your debt recovery methods. No one likes to be the "bad guy" but it is your money and you need it to keep your own business afloat, a friendly phone call just doesn\'t produce results. The old adage about the squeaking hinge getting the most oil is very true in this case. Your customer is likely to have the ability to pay some of his debts and the chances are that he will allocate that money to the debts he perceives to be the most pressing. You need to make sure that your debt is in that category.

Debt recovery success depends on taking swift action when a debt becomes outstanding, and using a firm, no nonsense approach that leaves your debtor in no doubt that you intend to be paid. This can be done for you by a debt recovery agency, but the high prices charged usually put most businesses of initially and they delay starting the collection process in the hope that the outstanding account will be paid. A polite but firm letter is often the best way to start the debt recovery process, some businesses have a success rate of over 90% by just sending out the first letter.

Using a debt recovery programmed, like iCollect, allows you to easily undertake the first steps of debt collection yourself, without needing to use the service of an expensive debt collection agency. The low cost means that you wont hesitate to start your debt recovery process as soon as the debt becomes due, giving you a much greater chance of success. The letters that you send out are designed to achieve the best possible response and payment rate. In effect a debt recovery programme, allows you to become the "squeaking hinge" and ensures that your chances of debt recovery are greatly increased, without being a drain on your time or cheque book.

Visit the Author's website: http://www.australiadebtcollection.com.au

The post A Guide to Business Debt Recovery appeared first on Submit Articles.

]]> Melbourne Debt Collection https://www.submit-articles.net/melbourne-debt-collection/ Thu, 06 Aug 2009 11:08:10 +0000 https://www.submit-articles.net/?p=215 Debt collection in Melbourne is becoming a real problem for Melbourne businesses. In good economic times cash flow is usually disregarded, to a large degree, because sales are booming and there is always money coming in to pay the bills. With the Melbourne economy tightening up, along with that of the rest of Australia,  the […]

The post Melbourne Debt Collection appeared first on Submit Articles.

]]> Debt collection in Melbourne is becoming a real problem for Melbourne businesses.
In good economic times cash flow is usually disregarded, to a large degree, because sales are booming and there is always money coming in to pay the bills. With the Melbourne economy tightening up, along with that of the rest of Australia,  the ready supply of sales is decreasing and many Melbourne businesses are having to look at reducing their overdue debts as a necessity to enable then to meet their own overheads. A recent survey by a major bank showed that cash flow and outstanding debts were among the main problems facing Melbourne small - medium businesses.
As with other large Australian cities, Melbourne debt collection is never easy and is a job put of by most business owners. Many dislike having to contact their debtors and ask for payment, or worst still, put the debts into the hands of one of Melbourne\'s many debt collecting agencies. They see the later as a final step and only something to be used on large debts. The fees and 20% plus commission deters many from taking this step, along with past experiences of debts put in the hands of debt collectors remaining unpaid. Like all Australian business people, Melbourne businesses hate the idea of throwing good money after bad.
To be effective, the debt collecting process has to be initiated as soon as possible after a debt becomes overdue. Research has shown, time and time again, that the chances of collecting an outstanding debt diminishes directly in proportion to the time taken to start debt recovery procedures.
The initial stages of debt collection needn\'t be expensive. They involve contacting the debtor, reminding them that the debt is due, and letting them know that you expect payment. They must be made aware that this debt is not going to go away and that you will be using stronger methods of debt collecting in the future.
Swift action is the key here. Assuming that your debtor does have some money at their disposal, the old adage of the creaking hinge getting the most oil comes into play. Many debtors, when faced with more outstanding debts than they have the ability to pay allocate their money to those businesses that they perceive to be the biggest threat or problem to them.
The use of Australian debt collecting software , like iCollect, allows Melbourne businesses to operate their own debt collecting system efficiently and cheaply. The idea behind iCollect is that you handle all the initial debt collection using the same letters that the Guardian Debt Collection agency does, complete with the Guardian letterhead. Experience shows that using these initial letters can result in up to 95% of outstanding debts being paid within a very short time, (over 60% after the first letter), without the need for further action. All you have to do is enter the debt details and the system takes over, printing letters when they become due. The cost is only $8.60 per week, which most business owners will agree is a very small amount to pay to be rid of their Melbourne debt collection problems once and for all.

Visit the Author's website: http://www.australiadebtcollection.com.au

The post Melbourne Debt Collection appeared first on Submit Articles.

]]>