Let’s get real here for a minute. If you have a problem with cash-flow, then you NEED to do one of two things. Either start selling more or if sales isn’t the problem, then get on the phone and start calling your customers who aren’t paying on time and are continuously late cutting you a check.
It’s easy for me to say, I was a bill collector back in the day (late 80s) and I used this $$ to pay my way through school. My sister got me a job at a collection agency back in the late 80s and within 3 months, I was the number 1 bill collector….hey, I had bills to pay, school to pay, rent to pay etc etc……and making a ton on commissions was the motivating factor in my life back then.
After graduation (2 YR in Business, Accounting & Finance) I started my first business, a credit and collections consultancy where I helped small business owners with their collections and bad debt issues.
Since I first heard the phrase Accounts Receivables (AR), people have proven to me (time and time again) that they are afraid to pick up the phone and call their customers who owe them money. They would rather go out of business or at the very least, let a bill collector go after a client than to actually ask for their money.
That has GOT to STOP. I’ll make it easy for you. Simply create a credit policy, hire a collections firm and s