For business to business transactions, most companies will ask thirty days credit. In fact, if you don?t accord different conditions, the law says commercial enterprises can take thirty days to settle the invoice by default.

Large companies will sometimes require 60 or ninety days to settle the invoice, or maybe even longer. It can be a real stress on your cash flow to be waiting yet another week for money that?s justly yours.

One thing you can do to improve your cash flow is to be straightforward with all customers about your willingness to use a debt collection company.

Firstly, you need to be utterly clear with clients about the full terms of the merchandise or service you provide, and the action you will take if those terms and conditions are not followed.

You should get a solicitor to help you write a contract that is most relevant for your organization.

You can also keep down your risk by running credit checks on new clients before you begin trading with them. Have a set of standard missives that you send to customers when monies are owed, telling them how much is due and the penalties for not paying immediately.

If you have followed this guide and still not been paid,it?s time to call in a debt collection agency such as Fisher Meredith.

Don?t be oblivious to the problem hoping the client will pay. Agencies say the more mature the debt becomes, the lower the odds of it being paid. You should recruit a collection agency you feel comfortable with.

The advantages of using a debt collector to continue trailing the debt are obvious. They have the time and expertise to focus on the recovery. A firm that knows what it?s doing will get a prompt result. And if the customer is unable to pay, they will look at the choices and take formal legal action.

The only disadvantage is the expense ? commonly up to 10 per cent of the debt. But ninety per cent of an outstanding debt settled is better than 100 per cent of the money still sitting in your client?s bank account!