In an ideal world, all customers would settle their invoices within the agreed payment terms, but unfortunately, despite payment times improving in Australia, very few businesses ever pay on time resulting in frustration and anxiety as it impacts a business’s day to day cash flow position. No matter what industry you operate in, every business owner accepts that unpaid bills are part of running a business, but they might be aware of specific strategies they can deploy to help minimise or even eliminate such risks.
When invoices are not paid it directly impacts your cash flow and your bottom line, leaving you frustrated and annoyed, as it adds another task to your day that you shouldn’t have to address if customers paid on time for the products or services you provided. Credit control is about minimalising the risk of overdue invoices and bad debt write-off. Carrying out this function is challenging and time-consuming and is one of the reasons why savvy businesses outsource such functions externally so they can focus on running and growing their business.
If this all sounds too familiar and trying to navigate how you can reduce slow payers and bad debt due to exhausting all possible methods yourself, below we have outlined proven strategies to help you improve cash flow by minimising slow-paying customers and bad debt.
