Debt collection, whilst it can be effectively managed, is a business problem and can seriously hold up cash flow whilst the money you need is being recovered.
The ideal scenario is to NOT let your business finances deteriorate to this level by implementing some effective business strategies, including talking to a debtors insurance expert such as Niche Trade Credit.
We offer cash flow management services and bad debt insurance (often referred to as trade credit insurance) to businesses that want to safeguard themselves from the negative impact of debtors who cannot pay.
Cash flow management services
As a business, you are vulnerable when you have an interrupted cash flow so an effective debtors control system is essential as part of your financial management.
Generally in Australia debtors are often allowed more than 54 days to pay their debts that are outstanding. What this means to a business owner is that they are only operating with approximately half of the cash flow that they really should have. This is close to double the 30 days that most businesses use for everyday trading. One of the things that you can do is understand the number of debtor’s days that are outstanding every month to ensure that you understand the effect that debtors are having on your businesses cash flow. read more on about our Credit Insurance Australia.
You can also use the following steps to help reduce the amount that is owed to you or at least help to recover money if it becomes outstanding:
- Confirm all payment arrangements with debtor’s in writing
- Be proactive and contact clients so that payments are made by the due date
- If companies are private get guarantees from the directors
- Resolve any client queries quickly
- Don’t hold onto outstanding debts – refer them promptly to a debt recovery agency
An effective debtors control system is an essential part of any business’s financial management. The good news is that you don’t need to be an expert to protect your business from the effects of an interrupted cash flow; Niche Trade Credit can take care of it for you.
Insurance brokerage service
An important component of any effective cash flow management system, credit and debtors insurance is essential for any business in case there are debts that cannot be recovered. This type of insurance is particularly important in the case of large debts (e.g. a business’s largest customer), where the financial stability of the business would be at stake if the debt was unable to be recovered.
Bad debt can become a serious issue for businesses, particularly when left unchecked. It’s important to consider the impact of bad debt on your business early; once debt has accumulated and is causing serious strain, it is often too late.
We can take care of your risk insurance needs for you, finding a suitable insurer and then processing the paperwork on your behalf.
Contact the debt recovery experts
Here at Niche Trade Credit, we are the experts on debtor and cash flow management. We have a broad range of services that can take care of this area of your business for you before it becomes a headache – from debt collection through to trade credit insurance. When you enlist our help, we’ll remove any stress and hassle from the equation. Let us do the hard work for you – while you focus on growing your business.
If you would like to talk to our credit and bad debt insurance experts in Sydney, call us on (02) 9416 0670. We also run an over-the-phone Client Advice Centre (the first month is free) for those times when you need information and advice in a hurry!
To talk to our credit and debtors insurance experts in Sydney, call us on 02-9416 0670.
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