5 ways of Debt collection to speed up your Account Receivable Process

It is common for any small business or for a startup to focus on net income as most of them think that it is the logical way to gauge the soundness of his business operations. But the fact is, an income statement only relate a company’s revenue to its expenses, it doesn’t show available cash in a business. But having an ample cash flow allows you to buy or sell anything to generate more income. Small businesses that manage their accounts receivable have one decided formalized process to collect the account receivable and to increase the cash flow. 

Here are 5 tips to improve your AR collection process by debt collection services providers.

1. Place Due Dates on Everything

Every invoice and statement you send to your clients or debtors should always contain up-to-date information about all the details such as how much they own to you, the due amount, late payment period, and such other things.

2. Send Your Invoice at the Start

Many companies bill their customers after the services have been provided to them, and then they give 30 days to pay and later they wait another 30 days to pays and after that attempt to collect due bills payment. Each week you wait for your money, it reduces the chances of recovering. Read more...