Debt Collection Guide

Debt collection is one of the most important business functions that is often overlooked. A company's success depends on the ability to generate cash-flow within sales terms. If the cycle depicted below cannot be completed in a timely fashion, working capital will be tied up in customers' bank accounts rather than building a stronger and more profitable you.

This guide provides information to help create a strong accounts receivable and collection program. By reviewing the suggestions within and implementing an accounts receivable and collection policy, cash-flow should improve. Another benefit is building and maintaining more dependable relationships with customers. The following information is helpful for starting new ventures or working to improve existing businesses.

For a sales to cash process to work efficiently, a written credit policy is imperative. The policy should precisely define responsibilities and roles, credit evaluation, collection standards, and terms of sale. Having a policy in place provides pre-determined guidelines for credit decisions. It assures consistent communication when dealing with customers thus strengthening relationships. Also, it helps eliminate friction between other departments when credit decisions are made.

For help developing a written credit policy, contact us.

When Premier Print Holdings closed several divisions in 2001, Aguirre, Aikman + Brown was extremely successful in collecting accounts for us that were well over a year old. Your professionalism as well as persistence have certainly paid dividends for us. There were several accounts that I felt would never collect, but Aguirre, Aikman + Brown really came through for us. It has been a pleasure dealing with them and their staff.

Christine Gerentes
Corporate Credit Manager, Premier Print Holdings

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