In a small or medium business, steady cash flow and working capital are quintessential for running day-to-day activities. Timely payments from suppliers and customers are the prominent source of cash flow for many businesses. Hence, having effective credit management strategies that can control your cash flow are a must-have for any business. That’s why CreditQ integrated with Tally and launched an updated version of business credit management services. BCM helps businessmen in managing their cash flow and also helps overall business growth.
Here are some unusual business credit management tactics that you can use in your business to have better credit control.
- Personalized messages
HMRC once used post-it notes with messages to improve their response rate from tax avoiders and motivate them to pay. The tactic was quite unusual but derived results.
You can use the same tactic on your suppliers and customers through personalized messages in emails or even on calls to get better responses and timely payments. The added efforts shown in personalized inspire people to pay on time.
- Offering rewards
Everyone loves getting something free. It is one of the oldest tricks in marketing. Although, as a business giving a reward for something you are entitled to feel wrong. However, offering early payment discounts and additional goods can make suppliers and customers pay for the invoice in advance and on time, increasing your cash inflow.
- Suspending services
If you are looking for a robust and effective move, suspending services is one tactic you can use to control your credit. It is an extreme measure, and we suggest moving to it only when other methods have failed.
Before suspending your supply or service to a supplier, weigh whether you would lose a valuable customer or be better off without them.
- Improve the designs
It is seen that many people put off paying an invoice till the last minute if the process is complicated, time-consuming, and hard to process. Offering more accessible modes of payment and changing the design of your invoice to something simple and easy to understand can help you get a better rate of timely paid invoices.
- Credit check your existing customers
Many businesses are becoming cautious of whom they lend their money to and check a company’s credit score before doing business with them. However, many companies don’t credit check their current customers, leading to problems down the road. You should conduct a yearly credit check on all your existing customers.
- Hire business credit management services
Tackling all your payment defaults and chasing the defaulters isn’t something every business has time and resources for it. An easy solution is hiring B2B credit management services like CreditQ. Because CreditQ integrated with Tally and launched an effective BCM function for registered businesses by tracking and controlling digital transactions between businesses with the goal of producing no defaulters. CreditQ BCM services chase your payments and help make settlements without legal battles.
CreditQ is a business credit management platform where you can report defaulters and also check the credibility of your customers and suppliers through its Commercial Credit Information Report. You can easily enjoy all these benefits at a nominal fee.