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Mention the top tips to improve your debtors?

In many businesses, its ability to manage its cash flow is crucial to its success and the control and management of the debtors is often a ‘painful’ task as a result of manual and repetitive processes. The recent turbulent economic environment only adds to the headaches of a credit control team and the introduction of effective tools to improve the collections process is arguably more important today than at any time in recent history. Effective credit control and query management should enable your business to; • Improve cash flow • Reduce debtor days • Increase customer service • Cut the cost of cash collection • Eliminate manual processes • Speed up the query resolution process

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Question added by Nadia Ahmed Mohammed Saeed , T/L. Credi t& Risk , Canar Telecommunication Co. LTD.
Date Posted: 2013/10/08
Amjad Ali
by Amjad Ali , Regional Manager , NATIONAL BANK OF PAKISTAN

Your question is very very important and relevant. To receive debts on time is very important. For timely collections, a system is designed called early warning system. Its nature may be different from organization to organization. It is a computer based auto system. It will show you on daily basis the debts which has become due but not received. It is a system generated report. On the basis of this report you have to contact your debtors immediately through telephone or letter to pay. Some time clients do't know when to pay and your communication will remined them of their obligations. Hence, Early Warning system will enable you to contact your client for recovery in the initial days/early days. You will also know about current status of your clients like they are alive, they are still living at the same place, they are in the same business or job etc. And then you can adopt appropriate strategy.          

Rajat Giri
by Rajat Giri , Admin And Accounts Officer , VAISHNO OHARMA MACHINERY

When the full payment of Due and Overdue is finished ‎

By offering them discounts .

JIAUR  REHMAN
by JIAUR REHMAN , Accounts Executive , ELITE ENTERPRISES

this is automatically mention the top tips improve debtors

Komal Panchal
by Komal Panchal , Salesman , Komal Panchal Financial Services

DEBTORS MEAN RECEIVABLES/ASSET Good services

TAHER ABDULAZIZ
by TAHER ABDULAZIZ , Depot Manager , Mzuri flour Millers ltd

By supporting customers when they are in difficulty.

Girma Degefu
by Girma Degefu , Senior Cost Accountant , Assela Malt Factory

he difference between a debtor and a creditor is that the creditor is the one who lends money in a credit relationship, and the debtor is the one who borrows it.

MInyahil Ketema
by MInyahil Ketema , business or accounting management , gage

1:ackle your biggest debtors first. 2: Reach out to your debtors. 3: Offer a payment plan. 4: Review your credit terms. 5: Set up a payment gateway.

Asif Nafees
by Asif Nafees , Computer Operator Cum Cashier , Sequel Technology

Creditors are individuals/businesses that have lent funds to another company and are therefore owed money. By contrast, debtors are individuals/companies that have borrowed funds from a business and therefore owe money

wisdom Jasper
by wisdom Jasper , Cashier And Customer Service Officer , First City monument bank

Be crystal clear with your payment policies. ... Reduce your payment terms. ... Offer early payment discounts. ... Automate your debtor management process. ... Provide additional payment options. ... Consider funding support.

Ajay Lodha CA
by Ajay Lodha CA , CHARTERED ACCOUNTANT , SELF EMPLOYED

Strict Payment terms , charging late fees , constant payment follow ups will surely improve receivables position.

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