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Many small business owners suffer from anxiety and stress-related problems due to irregular cash flow and late payments. In fact! The final days of the month are full of dread, and even the idea of chasing the late payers is enough to send a chill down your spine.
According to a study conducted by Juno on 500 SME owners of the UK, it was found that 63% of them face anxiety issues. The fear of late payments not just diverts you from the core business operations but can potentially lead your company to heavy losses. Stress does not allow you to allocate time and money to resources efficiently.
You can cope with this stress by streamlining the credit control procedures. Come find out the best ways to reduce the stress of late payments in this blog.
Reduce Distractions With a Clear Strategy
There are huge chances of distraction if you don’t have specific people assigned for the credit control. Make sure you maintain proper structural procedures from the moment a product or service is ordered until the time the invoice is cleared.
Making calendars and giving strict deadlines can ease the process and your stress level. If everything is organized, then keeping track of operations doesn’t seem intimidating.
Keep details of clients with an appropriate invoice numbering system and stay updated about the tax season.
Bring Automation to the Invoicing Process
If your payment procedure is not systematic, then you’ll end up wasting a lot of time and energy that could otherwise be used. Automation brings clarity and helps you to monitor billings and invoices.
Being in two minds regarding credit control can make you procrastinate over billing. The switch to automation reduces interruptions in the revenue stream and saves you from constantly chasing the late payers.
Having a proper late payment management system and billing automation is a need of the hour if you want to focus on core aspects of your company.
So see where you can invest more software in improving uptime.
For example, you can update your accounting software or automate invoices and alerts during credit.
This lets you see how much and when to pay, let customers know when it’s due, reduce late payments, and ultimately improve cash flow.
Outsource to Enhance Efficiency
It’s always better to delegate tasks to an expert if you find it overwhelming and time-consuming. As a business owner, you can’t trade time for money as each minute is important.
If credit management appears daunting, outsource this work to an agency or freelancer.
You can also hire an in-house employee if the capital allows, but it’s not a necessity. Doing so can reduce your stress and give you a breath of fresh air.
A professional business credit management agency can do this for you. This lets you know that your credit management is in professional hands, so you can safely spend time focusing on growing your business.
You can use CreditQ’s expertise and experience to reduce wait times and improve your cash flow.
About the Author
CreditQ is the industry’s leading credit information and management platform in India. Make business start-up and approval easier for vendors and customers.
