Late & High-Risk Debt.
Suggest a payment plan for debtors unable to pay off their debt in a lump sum. Consider using Debt Collection Agencies if your attempts are not getting the desired result.
Schedule supplier bills for payment on the due date unless there is a discount for earlier payment. Negotiate longer payment terms if they are a long-term regular supplier which you have a strong trading relationship with.
Interest Rates on Loans.
If you have loans, check current interest rates and check your loan type. You maybe able to negotiate a better interest rate.
Have a robust sales plan – overlay this against your budgeted expenditure to highlight any cash flow risks. Once aware of the risks, you can plan to mitigate these by activities such as: Short-term sales – Special of the month; Extra discount… or contact customers that are ready to buy.
It costs, on average, 7 times more to sell to a new customer than to an existing customer!