ECA - Presentation - Financial Management Considerations

Bob Partridge  Effective Credit Control     

Bob Partridge  Effective Credit Control     

Effective Credit Control  Presentation notes      17% of all insolvencies in the first quarter of 2012 were directly related to the Construction Industry.  The key to stability in business is good management of the cash flowing in the business.   Think strategically to avoid lack of cash flow impacting in your business.   Maintain good customer records.  You never know when information you glean from them might be needed to help you secure payment of delinquent accounts.  

Effective Credit Control  Presentation notes      17% of all insolvencies in the first quarter of 2012 were directly related to the Construction Industry.  The key to stability in business is good management of the cash flowing in the business.   Think strategically to avoid lack of cash flow impacting in your business.   Maintain good customer records.  You never know when information you glean from them might be needed to help you secure payment of delinquent accounts.  

Effective Credit Control  Presentation notes      Information is power. The most important thing you can do to protect your business is to know who your customers are.  If you don’t know the legal capacity of your customer how do you expect to be able to legally recover money legally from them?  If you know the legal identity of all your customers you can pursue and enforce recovery of any debt they owe you in the correct and most appropriate way.   Agree terms of business BEFORE you do business.  If you delay invoicing your customer you are providing extra free credit. Don’t do it!  

Effective Credit Control  Presentation notes      Information is power. The most important thing you can do to protect your business is to know who your customers are.  If you don’t know the legal capacity of your customer how do you expect to be able to legally recover money legally from them?  If you know the legal identity of all your customers you can pursue and enforce recovery of any debt they owe you in the correct and most appropriate way.   Agree terms of business BEFORE you do business.  If you delay invoicing your customer you are providing extra free credit. Don’t do it!  

Effective Credit Control  Presentation notes      Ensure that whatever your credit control strategy you use that every step in the process is an escalation of that process and not a repetition of it. .  Say what you mean and mean what you say.  Perception is everything!   If you give customers an inch then invariably they will take a mile!  Don’t make excuses for customers as they can usually make enough of their own!   Don’t forget to ask for your payment! Your customer knows you are entitled to it and professional considered credit management will not damage future trading relationships. 

Effective Credit Control  Presentation notes      Ensure that whatever your credit control strategy you use that every step in the process is an escalation of that process and not a repetition of it. .  Say what you mean and mean what you say.  Perception is everything!   If you give customers an inch then invariably they will take a mile!  Don’t make excuses for customers as they can usually make enough of their own!   Don’t forget to ask for your payment! Your customer knows you are entitled to it and professional considered credit management will not damage future trading relationships.