8 Things Smart Retailers Do to Control Accounts Receivables
- To keep receivables as liquid as possible, encourage cash, credit and debit card transactions whenever possible.
- Keep business accounts on a short payables schedule and monitor accounts receivables to keep customers on schedule.
- Offer longer terms (60 days+) only when you are given a broad concession such as an annual contract or other significant commitment.
- Invoice all business customers promptly at the close of every business cycle.
- Make deposits the same day as cheques are received.
- Charge interest and penalties for late payments and offer discounts for early payment in your standard business account terms.
- Do not offer payment terms to customers without both a background check and a probationary period for timely payments.
- Aggressively collect payables every business cycle