Good credit management is always crucial to the profitability of your business, but during an economic downturn, it can become a matter of life or death.
With traditional sources of credit tightening, businesses are currently forced to manage their cash as effectively as possible. But if customers delay or default on payments the flow of cash becomes tighter and the very survival of the business is threatened.
Currently three fifths of UK businesses are experiencing cash-flow problems due to late payments and defaults.
What can you do to make sure payments are made on time and in full?
How effective is your credit management?
Many problems of late payment and bad debt can be avoided by making sound arrangements at the beginning of a trading relationship. How many of the following can you answer ‘Yes’ to?