Don’t let outstanding debt from customers or clients interrupt your business.
Empower yourself with some easy steps to improve your debtor days. Check out our list for some ideas of actions you can take to reduce the negative effects on your business.
- Regularly review your Debtor Days and aim for a target Debtor Day figure
- Encourage pay in advance (subscriptions/ retainers)
- Shorten your credit terms: Example from 30 to 14 days
- Take a deposit and stage payments
- Raise invoices promptly- don’t leave it until later!
- Send invoice reminders to collect payments before due date (2 weeks, 1 week, day before etc)
- Standardise correspondence to chase payment
- Thank your customers for prompt payment. 🙂