In the article, In a Pinch, the author C. J. Prince discusses the different paths a business
can take to increase cash flow. Prince suggests that every business should operate with a pay-in-advance set of terms (Prince, 2008). Understandably, this is not always possible for every business. The main goal for any company is to have as many clients on the pay-in-advance model as possible. When changing the payment terms to reduce
the credit advance, it is always wise to be upfront about the change with the customer (Prince, 2008). If a customer is refusing to accept your terms and continually pays invoices after the due date, consider dropping them as a customer (Prince, 2008). Also, Prince recommends investigating a new company prior to extending a line of credit (Prince, 2008).
In the article, Pay Me!, the author Randy B. Hecht discusses ways to increase the
efficiency of collections. The ultimate goal is to get the customer to prioritize your company’s bill (Hecht, 2009). In today’s post-recession era, maintaining cash flow is imperative. It is completely normal to have desperation in your voice during collection calls (Hecht, 2009). However, the author suggests not letting emotions trump the
need to be paid (Hecht, 2009). Having had experience with collection calls, I have found kind assertiveness yields the best results in getting invoices paid. If the customer refuses
to pay the debt, then they are not a good customer it would be financially advantageous to cut ties (Hecht, 2009). Nevertheless, the delay in payment may be due to an inefficient billing system or not sending out invoices in a timely manner (Hecht, 2009).