Part 1
When I was a credit manager for a Fortune 500 manufacturer, as an incentive to generate additional revenue, our Treasury Department partnered with a leasing company in a program to offer equipment financing at low rates to our commercial customers. The program was a failure....it didn't result in one incremental sale.
The failure wasn't due to the rate...it was one of the lowest on the market. It was all about getting the credit. Many potential customers were small businesses. They couldn't qualify for the financing even if the rate was -0-. Sounds familiar? As Dickens once said:".... the period was so far like the present period...."It was a time....like today.
What do you do? Do with less? Less being...less people ? less marketing? less expansion? less and less....
The solution is on your balance sheet....Accounts Receivable. Increase the turnover, lower the Days Outstanding, reduce the delinquent A/R....there lies more cash for your current and present operations.
Sounds too simple...maybe even a tad insulting..because you've probably already checked into your receivables. But, automation of the collection process is a crucial element with accelerating the cash flow
into your company. Not only can it get you the cash you need, but could also free up the resources in collecting your receivables.
How is it be done? TO BE CONTINUED.....
Thanks for visiting!
Bill, The Cash Man
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