How to Minimize Debt?

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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