How to reduce accounts receivable

Process for the reduction of the accounts receivable is divided into several main groups. The activities of each of them allows to reduce the risks associated with the issuance of commercial loans.

Before you sign a contract, check the company-buyer. Then very well make an agreement, consider the possible motivation of the client in the timely return of all required funds. The contract will include the possibility of further delay of payment. Determine fines for late return of payment for the product, insure the risks of non-payment, verify the signing of documents by the counterparty and the number of documents.

When working with clients classify counterparties according to risk. Just in case them sign an additional agreement on issuing a loan, select credit limit and keep track of all the literacy of filling of primary documents. Then carefully follow the payment, and if necessary recall of the company to the buyer on the date of payment. Charge of penalties (fines) for overdue payments, and also track the current solvency of borrowers and new purchases of founders or leadership of the organization.

If you experience arrears you must understand what caused the delay of a receivable or a final payment. Find all the authentic information on the solvency of the customer, negotiate on debt recovery. If repayment is unlikely, decide what method you will be able to claim it in court or the insurance order, the system of provision of assignment of claims or transfer of the debt.

In a situation when the contractor pay his debt, if necessary, can continue work, previously reducing its credit limit and setting it to a higher degree of risk.