6 Must Reads to Protect Your Cash Flow Apr 11, 2017Views: 693
Commercial debt recovery is the right route
Many often wonder, what is the best way to retrieve all my unpaid invoices? The answer is commercial debt recovery. This route eliminates time and money wasted chasing debtors when you could be concentrating on what really matters – your business.
Here are 6 reasons why commercial debt recovery will be beneficial to your business:
Increase your company’s cash flow – quick
The importance of strong cash flow is aptly stated in the common expression “cash is king.” Having cash within your business will put you in a more stable financial position with better buying power. Having cash on hand is critical. A positive cash flow is essential if you want to generate profit.
Reduce debtor days
It has been reported for some time now that on average the amount outstanding to small businesses by their customers equates to around 56 days of the average daily sales figure reported by such businesses. This same figure is also referred to as ‘Debtor Days’ and it is a Key Performance Indicator that needs to be tracked constantly.
56 days is almost double the 30-day credit terms that are common in business, four times 14-day terms, and 8 times 7-day terms.
Increased efficiency and productivity
Productivity is essentially the efficiency in which a company can transform resources into goods, potentially creating more from less. Simply put, higher efficiency equates to better margins through lower costs. This allows for better compensation for employees, more working capital, and an improved competitive capacity.
Unpaid debts should not cause a huge strain on your business. If you want your debts swiftly actioned think about contacting Darcey Quigley & Co. We will ensure that collections are dealt with in the most effective manner and aim to recover your funds as soon as possible. Contact us today to discuss your overdue accounts. We won’t take up much of your time but will free up a lot of your time. 01698 821468, [email protected] or visit www.darceyquigley.co.uk and chat with us on live chat.
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