How to Minimize Debt?
Be Rational that a debt leads to Bad Debts and then leads a crash point to affect your cash in-flow and then finally Out-Flow.
- There should be Credit Management Department.
- Advance payment is particularly helpful when the deal amount is small.
- You can request a Percentage of Invoice Payment, for example 15 % to 20% for small amounts.
- Add a barter option also plus a Penalty amount on non-payment.
- Timely Act – Risk is a main Part of Business Deals. Better you go for Short time invoicing systems.
- Add an amount of 5% to 10% on date of payment, when not paid if it is written agreed.
- Work on a short period invoicing system.
- Polite language Reminder letters and calls if needed.
- Give an option to pay Early and offer discounts