The No. 1 Way To Improve Your Cash Flow

October 1, 2007
/ Print / Reprints /
ShareMore
/ Text Size+

Do you like dealing with late-paying clients? At best it can be an uncomfortable negotiation, and at worst it can get downright nasty. There’s a better way to handle the problem of clients who don’t pay their invoices on time.

You can improve your cash flow, increase profits, and have more money to invest in growing your business by partnering with a professional accounts receivable management (ARM) company. First of all it’s cost-effective.

When you consider the time value of money, the benefit of having cash at the ready for your business needs, and the affordable ARM rates, you’ll wonder why you didn’t do this earlier.

Here are some numbers you need to consider. After 60 days the likelihood of collecting on outstanding invoices diminishes significantly. According to the Commercial Collection Agency Association you have only a 69.6 percent chance of collecting at 90 days and at six months it falls to 52.1 percent.

Some clients are simply going through a temporary rough spot and need a little flexibility; others take advantage of you and treat your invoice like it’s a free loan.

Think of the benefits of outsourcing your accounts receivable management:

• You save company time and resources.

• You increase your receivables each month.

• Your cash flow improves.

• Your company becomes more profitable.

Review your accounts receivable aging report and make a list of all accounts more than 60 days overdue. Don’t wait. It’s time for you to take action so that you get paid now. Your business depends on it.

Reprinted with permission from Cohen & Pratt, a full-service collection agency that handles accounts receivable recovery process. For more information call 1-800-630-4940 or visit www.cohenandpratt.com.

Publication date: 10/01/2007

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 ACI Home Performance Conference

The 2014 ACI National Home Performance Conference & Trade Show was held in Detroit.

Podcasts

NEWSMakers: Doug Dougherty

Doug Dougherty, president and CEO of the Geothermal Exchange Organization (GEO) joins the program to discuss the latest happenings with GEO, including the drive to get included in state and federal definitions of renewable energy, plus the future of geothermal.  Posted on July 25.

More Podcasts

ACHRNEWS

NEWS 07-21-14 cover

2014 July 21

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

R-22 PHASEOUT POLL

Some in the industry are calling for the EPA to halt production of R-22 as of 2015. What do you think?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con