How to optimise business debt management

[Augusta]

Business running comes with having people buying on credit. But the most is trying to retrieve your money from debtors in the most efficient ways. There are several ways to improve your debt collection process. So you need to use the best methods to optimise the process.

You can start with the use of automatic credit control tools like Debtor Daddy which will aid you receive detailed reports on outstanding payments. You can even send automatic chasers to your clients to remind them.

Another good way is to use invoice factoring. This is a type of invoice finance where you sell your outstanding invoices to third parties. Doing this will help you have your cash to stabilise revenue and boost cash flow,

 

[Leah Kelvin]

To optimize business debt management, it is crucial to efficiently manage and use debt in order to ensure growth and stability. This can be done by minimizing the risks and costs. For example, understanding of debts obligations, assessment of a firm’s borrowing capacity, ranking of high interest bearing loan among other strategies. Other methods include debt consolidation, negotiation with lenders, using credit accordingly, maintaining good credit rating and sourcing for finances from different parts of the economy through diversification. It also involves closely watching debt levels as well as seeking expert opinion on this matter which might help a company improve its financial performance as well as prepare it for future growth.