Debt management

Debt management

Running a successful trades business involves keeping many balls in the air- which some days can seem overwhelming. In order to be able to manage your business successfully you must be able to manage all aspects of your business, this includes debt management. Being able to manage your debt successfully in your trades based business is important for your long term success.

It is a cycle of cash in cash out, keeping your debts down whilst making sure that you are on top of any outstanding debts that are owed to you. 

There are several ways you can ensure that your debt management is under control.

1. How do you keep your cashflow positive? Do you get deposits from clients before you begin works? Can you offer pay on site options for your clients to make it easier to receive payments before the client can conveniently forget!
   
2. How do you chase down debts that are becoming a bit long in the tooth? To be honest, every debt is worth chasing, but you are best getting an expert to do the work for you. In the long run it is worth your money, as you can clear the debt, pay a recovery agent and move on. It saves you time, stress and loss of earnings by giving up on the bad debt. It also allows you to focus on your business
   
3. Make sure you are paying your debts on time. If you can’t you should also chat to your creditors and organise payment plans to help ease the pressure so it doesn’t feel so big and unmanageable.
   
4. Make sure you have a clear and concise debt recovery policy that you share with your clients. This will ensure that it is clear that your business will recover all outstanding debts and your clients will be more tempted to pay up when their invoices are due. 
   

Debt management is a part of business that everyone has gone through. It’s all about the planning and making sure that you have a policy in place- and stick to it! Give you customers every opportunity to pay- this includes easy online payment portals that are safe, taking deposits, payment options and if need be employing a third party to debt collect on your behalf.

Ensuring your debts are up to date is all about cashflow, having a positive cashflow will allow you to budget and grow your business. If you want to know how you can streamline your debt management, manage your cashflow and chase up money from clients- give us a call today for a FREE chat!  

0418 286 750

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