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Having trouble keeping track of all the customers owing you money?
You need better DEBTOR MANAGEMENT
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Why debtor management and credit control is so important
Credit control management of an organization is very crucial to ensure survival
and longevity in business. Credit control is about controlling risk, the risk
of non–payment and the risks associated with late payments, the risks of
opening some accounts, while at the same time keeping good customer
relationships. These are the main problems inherent in the late payment
culture — how to collect money
while keeping good customer relationships.
The larger the company the easier this task is, and the converse.
In any business which provides “open terms” policy to their customers,
it is important to monitor on the amount of credit given. Every customer is
given different amount of credit based on credit evaluation of the company.
Monitoring of these credits may be on a daily, weekly or monthly basis
according to each company requirement. A person from the finance dept or
marketing is appointed to ensure the total invoice value at any point of time
do not exceed the credit amount agreed.
Staying on top of your finances
Running a successful small business requires not only the vision and drive to
identify market opportunities but also the ability to manage the firm’s
finances prudently with a proper credit control management and monitoring system.
Poor cash flow is one of the main reasons for business failures, for small and
medium businesses, the real key to success is maintaining a good flow of cash
through the business enabling it to make purchases for operation and most
crucially paying staff wages. In order to protect healthy cash flow in an
organization, debtor management with efficient follow ups on debts is needed
to collect money when it is due.
What would be a good computer-automated tool for debtor management?
We would recommend taking a look at our Credit
Control Management software.
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