Which management practices tend to slow the collection of receivables? How have recent changes in the banking industry influenced the collection process?
2007-01-25 15:50:39 · 4 answers · asked by kitsune12 1 in Business & Finance ➔ Corporations
Proper bookkeeping practices and prompt statement and invoice mailings to customers.
Research your customers before you extend credit, and retain customer deposits.
2007-01-25 16:03:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Organization is the key. If you are organized, then you will have an easier time keeping track of who owes what and when they owe it. I'm not sure how recent changes in the banking industry have influenced the collection process.
2007-01-26 00:06:17 · answer #2 · answered by Mariposa 7 · 0⤊ 0⤋
Management should safeguard properly before extending credits. collateral is one option and in the event of default like in this case presented, management can now resort to legal remedies like taking the properties. Of course, demand letter duly signed by your attorney is a pre-requisite before exhausting another remedies.
I also come across a company wherein they let the berdugos or police officers visit the debtors premises just to pressure them taking into consideration that they should not violate the law. Its just a sort of a bluff.
2007-01-26 01:55:16 · answer #3 · answered by ricky c 1 · 0⤊ 0⤋
By offering discounts to those that pay before the billing is due.
By doing this the company would also save money by not having to re-bill. You would save on envelopes, statements, postage and billing services.
You save, we save. Win/Win
2007-01-25 23:55:15 · answer #4 · answered by Dumb Dave 4 · 0⤊ 0⤋