If your business provides products or services on credit, then you are already well aware of the strain that a delinquent account can have on your cash flow and bottom line. Unfortunately, you may have already made the faulty assumption that because a customer has come to you for a product or service then that ensures that they will pay for it. You may have already come to the realization that many customers fail to pay on time or, even worse, refuse to pay at all.
Maintaining an effective accounts receivables department can be a challenge. Implementing proper policies and procedures is the most important factor, but is often overlooked by many small to medium size businesses. Everything from your credit application to the length of terms will affect the numbers on your aging report. Working with a collections agency that will provide you commercial credit reports really help you know your client plus help you make an informed decision when extending terms to new customers which limits your risk. Continue reading “Event Sensitive Vs. Time Sensitive Accounts Receivables”