GETTING PAID: C. Escalation Process

Maximizing Cash In: The Healthy Heart of Business

BY Robert I. B. Kanyamanza 

This section looks at three ways to maximize cash from sales in a business.

The first is fairly straightforward: grow revenues through all the product development, sales and marketing expertise you can master. Making sales is just the first step in the right direction.
The cash management perspective focuses on the two subsequent steps on maximizing “cash in”: making sure costumers pay you (collecting your receivables) and turning those cheques and transfers into cash into your bank account (converting cash as quickly as possible).

CASH FLOW MANAGEMENT
1. GETTING PAID

Bad debts and late payments can turn even good months into liquidity struggles. Receivables collection is one of the most common shortcomings in cash management, so it is a good place to start.

C. Escalation Process

Look carefully at your practice of working on credit for customers that are chronically late or have debts exceeding 90 days. If you decide to stop work, this action alone may persuade some debtors to pay up, but you may have to go further.

ROBERTKA Business Solutions experts advise, If you believe you are being stalled, that you progressively escalate your payment requests through these steps:

  • pre-collection letters,
  • demand notice,
  • outsourced collections, and
  • legal action

At some point, you may want to consider involving professional debt collectors either as advisors or to act on your behalf.
In addition, you may also have rights to seize inventory or to request payment from your customers’ customers. Check with your legal advisor.

ROBERTKA Business Solutions
Focus on your success

 

RELATED POSTS:
HOME
Getting Paid: A. Basic Collection Practices
Getting Paid: B. Your First Line of Defense
The Concept of liquidity
The Secret to Maximizing Cash Flow
G
etting Paid: In Between Payments Calls

About ROBERTKA Media.Inc 178 Articles
We are a Media and Communication Company specialized in the production of business information contents, financial and management notions and analysis. We also produce and publish World and African business headline news. We mostly focus on producing text and video analysis covering worldwide economic, commercial, management and financial trends which have a strong leaning and inclination on African businesses and affaires. We publish under the banner of our consultancy house: ROBERTKA Business Solutions.inc Join the conversation!

Leave a Reply

Your email address will not be published.


*