Bad debts are bad for business. Especially when these are owed to you by defaulting clients and your debt recovery options are thin. Cash flow is the lifeblood of your business so you cannot afford financial bottlenecks. The first step to ‘finance my business’ is tightening up your trading terms.
Credit application forms are key to cash flow
Customers finance my business: naturally, you know this foundation stone of trading. But, it is an unfortunate business truth that some customers forgo payment. Unpaid debts put your cash flow under pressure. By comparison, prompt customer payments power health cash flow to keep your business thriving. That simple equation shows how important debtor management is in the way your individual ‘finance my business’ approach.
Recovering unpaid debts is much more easily done when you have a clear paper trail leading back to your client and outlining your transaction agreement. Here is where your credit application form is an important tool. Now is the perfect time to firm up your credit application form to define:
All key contact details for your new client
Your specific business trading terms
Customer debt repayment obligations
Specific period in which payment is due
Your legal rights and responsibilities plus those of your client
Tick the box of establishing a robust credit application form. That way you fire up the confidence with which you say I ‘finance my business’.
Finance my business with strategic finesse
Use your credit application form to support your business strategy. By thoroughly evaluating each form you get a much stronger handle on your customer’s financial situation. Finance my business is your goal. Finance my purchase is your customer’s goal. For that to be a win-win transaction, you need to feel confident in granting credit to every customer who applies. Better decision-making places you in a better position to finance my business.
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