Managing your debtors is essential to maintaining cashflow if your business. National Mercantile is here to help you keep on top of things, but here are some tips to get your affairs in order before you come and see us.

Efficient Systems

Background Check:  It’s essential to run risk assessments on potential clients. You have to put aside the excitement of picking up a new client and first ensure that they are not going to be a risk of non-payment. A relatively inexpensive process, a credit check can be performed quickly and save you headaches when payment time comes.  Establish the businesses legal status by using ASIC’s Register search before seeking trade references or agency reports.  Being aware of the financial status of your customer can establish whether they are an unreliable debtor.

Terms and conditions: At the beginning of every business relationship terms need to be established and written confirmation received. These terms should be delivered in the relevant documentation in a clear manner, including on invoices and order acceptance.

Encourage fast payment: Encourage timely payment by including provisions for adding interest on any outstanding accounts. You could also consider discounts for early payment.

These are just a few tips for helping cashflow in your business. Make sure you check back in regularly as we add to these tips.