Being owed money in late payments puts a strain on cashflow for small businesses, which is why we have put together some tips to help improve credit management.
Following on from Top tips for healthy cashflow, our sister website BusinessZone's Lucie Mitchell recently published a digest of tips, sponsored by Visa, for getting the money you're owed on time and dealing with late payments.
Here, we provide a round-up of key points they made:
- Know your customer
- Bill on time
- Set out your payment terms clearly
- Consider shortening your payment terms
- Provide a choice of payment methods
- Add a personal touch
- Chase overdue payments immediately
- Consider charging interest on overdue payments