{"id":2877,"date":"2020-02-18T15:35:00","date_gmt":"2020-02-18T15:35:00","guid":{"rendered":"https:\/\/www.xolv.nl\/?post_type=nieuwsitem&#038;p=2877"},"modified":"2024-04-28T10:24:47","modified_gmt":"2024-04-28T10:24:47","slug":"good-credit-management-the-cheapest-way-to-optimise-cash-flow","status":"publish","type":"nieuwsitem","link":"https:\/\/www.xolv.nl\/en\/nieuwsitem\/goed-debiteurenbeheer-de-goedkoopste-manier-voor-optimale-cashflow\/","title":{"rendered":"Good debtor management: the cheapest way to optimise cash flow"},"content":{"rendered":"<p>In doing so, these companies increase the\u00a0<strong>risk of non-payment of receivables, worsen their cash position and miss opportunities<\/strong>. Because no money or less money means less business. This situation is also reinforced by the fact that obtaining credit from banks and financial institutions is becoming increasingly difficult. So companies have to rely more and more on their cash flow.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Consistent or not?<\/h2>\r\n\r\n\r\n\r\n<p>Good debtor management is - and yes, even we as specialists say this - absolutely no\u00a0<em>rocket science<\/em>. Indeed, it is quite simple.\u00a0<strong>Good accounts receivable management is simply about consistently following up on tasks set out in clear processes<\/strong>. But in that one word, consistent, often lies the problem. If no procedures or agreements about debtor management are in place, it will not work. And if no managers have been appointed and debtor management is \"just done on the side\", it has no chance at all.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Conditions of good credit management<\/h2>\r\n\r\n\r\n\r\n<p>Want to make strides in debtor management? Here are the prerequisites for good debtor management:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>The processes should\u00a0<strong>captured<\/strong>\u00a0are;<\/li>\r\n<li>Debtor management is a\u00a0<strong>function to be performed daily<\/strong>;<\/li>\r\n<li>Someone should\u00a0<strong>responsible<\/strong>\u00a0are for debtor management;<\/li>\r\n<li>There should be interaction between the\u00a0<strong>commercial department and the finance department<\/strong>;<\/li>\r\n<li>The\u00a0<strong>management<\/strong>\u00a0should the function of debtor management\u00a0<strong>fully support<\/strong>;<\/li>\r\n<li>To monitor progress, there should be\u00a0<strong>weekly reports<\/strong>\u00a0be made;<\/li>\r\n<li>There should be\u00a0<strong>good tools<\/strong>\u00a0available to perform debtor management properly:\r\n<ul>\r\n<li>Credit information;<\/li>\r\n<li>Credit insurance;<\/li>\r\n<li>Debt collection.<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Accounts receivable management process<\/h2>\r\n\r\n\r\n\r\n<p>Have you created all those conditions? Then this is the process for successfully managing your debtors:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Check the\u00a0<strong>creditworthiness of prospects<\/strong>\u00a0(before you put (too) much time into it);<\/li>\r\n<li>Leg\u00a0<strong>delivery and payment terms<\/strong>\u00a0firmly in place;<\/li>\r\n<li>Pass\u00a0<strong>terms and conditions<\/strong>\u00a0apply (include these on quotations, order confirmations and invoices);<\/li>\r\n<li>Confirm orders\u00a0<strong>in writing<\/strong>\u00a0(by e-mail);<\/li>\r\n<li>Save\u00a0<strong>delivery notes<\/strong>;<\/li>\r\n<li>Put the\u00a0<strong>payment period\/due date<\/strong>\u00a0on the invoice;<\/li>\r\n<li>Start\u00a0<strong>immediately after the due date<\/strong>\u00a0With debtor management;<\/li>\r\n<li>Take\u00a0<strong>personal contact<\/strong>\u00a0on (calling!);<\/li>\r\n<li><strong>Confirm all appointments made by e-mail<\/strong>\u00a0and strictly follow these agreements;<\/li>\r\n<li>Send\u00a0<strong>not too many mails\/letters<\/strong>;<\/li>\r\n<li>Keep the cycle short; send a\u00a0<strong>official notice<\/strong>\u00a0before handing over the collection to an external party;<\/li>\r\n<li><strong>Report overdue receivables in a timely manner<\/strong>\u00a0with the credit insurer if you are credit insured.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Faster payments<\/h2>\r\n\r\n\r\n\r\n<p>If you implement debtor management strictly and consistently, in the manner described above, you will find that your\u00a0<strong>customers start paying faster<\/strong>. This reduces default risk and\u00a0<strong>increases your cash flow<\/strong>. And that, in turn, makes it easier for you to seize new opportunities. In other words, you can\u00a0<strong>ondernemen<\/strong>. And that's what you prefer, right?<\/p>\r\n\r\n\r\n\r\n<p>Should you nevertheless still need extra working capital, excellent credit management will help you to attract financing based on accounts receivable. Yet another reason to put your credit management in order.<\/p>\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/www.xolv.nl\/en\/debtor-management\/\" data-type=\"page\" data-id=\"422\">Xolv helps you optimise and improve your accounts receivable management<\/a>!<\/p>","protected":false},"excerpt":{"rendered":"<p>As a specialist in debtor management and all services related to it, Xolv's specialists visit many companies. We regularly find that debtor management at these companies is often an afterthought, not well structured and ad hoc.<\/p>","protected":false},"featured_media":2722,"template":"","onderwerp":[23],"class_list":["post-2877","nieuwsitem","type-nieuwsitem","status-publish","has-post-thumbnail","hentry","onderwerp-debiteurenbeheer"],"_links":{"self":[{"href":"https:\/\/www.xolv.nl\/en\/wp-json\/wp\/v2\/nieuwsitem\/2877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.xolv.nl\/en\/wp-json\/wp\/v2\/nieuwsitem"}],"about":[{"href":"https:\/\/www.xolv.nl\/en\/wp-json\/wp\/v2\/types\/nieuwsitem"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.xolv.nl\/en\/wp-json\/wp\/v2\/media\/2722"}],"wp:attachment":[{"href":"https:\/\/www.xolv.nl\/en\/wp-json\/wp\/v2\/media?parent=2877"}],"wp:term":[{"taxonomy":"onderwerp","embeddable":true,"href":"https:\/\/www.xolv.nl\/en\/wp-json\/wp\/v2\/onderwerp?post=2877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}