How can management practices speed the collection of receivables

A really ruthless person with no scruples but good company procedure, customer service abilities, a company manual and good organization skills.

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Originally Posted by carmencita16

How can management practices speed the collection of receivables

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One thing Management can do is give sales discounts to encourage early payment.
For example: 2/10,n/30 ( 2% discount given if paid within 10 days of sale, or the net amount is due in 30 days)
This sort of discount encourages creditors to pay earlier to receive the discount.

Yes, in theory it does encourage those who have the money after collecting their receivables as well, 2% l0 days net 30 is a good discount and business practice. But, having had a small business in Michigan for a number of years and trying to collect from local merchants was such a chore, even offering a small discount. I wasn't good at it, I fell for hard luck stories and gave them extra time, not a good idea when two people owning a company have mouths to feed.

I found someone with the attributes in my first post and could get onto to other things like inventory control, sweeping the floors, taking care of a 3 months old baby who came to work with me, etc. etc.

The economy wasn't all that good in the States 27 years ago, even for someone with a good business plan.