Some clients are just not right for your business. Why spend your time and potentially hurt your cash flow when you could be working towards obtaining and building healthy client relationships?
Atlanta, GA (PRWEB) October 28, 2014
C2C Resources, a national commercial debt collection agency, released a tip sheet on three customer warning signs that business owners should heed to protect their cash flow. The company believes businesses should establish a schedule to annually review their existing client files to end bad client relationships. If reviewing accounts is a new business practice, the company suggests that a yearend review is an appropriate time to start.
“We understand that customers are hard to obtain and we are by no means encouraging business owners to wipe out their client list,” explained Todd Tinkler, President of C2C Resources. “Some clients are just not right for your business. Why spend your time and potentially hurt your cash flow when you could be working towards obtaining and building healthy client relationships?”
During the review process, document the action and track each customer’s on-time payment history. The review can reveal trends in regular slow-paying customers and help with forecasting the company’s cash flow for the upcoming year.
“A client relationship utilizes nearly every department of your staff: sales, product development or manufacturing, warehouse and finance,” said Tinkler. “If you are keeping a customer around because you are concerned that you will not get more customers, you are wasting your resources on customers that could cause you bad business health.”
Tinkler believes businesses should reevaluate their relationship with a client if one of the following occurs:
1. Consistent slow payment from a client.
2. Verified industry rumors of client problems.
3. Negative feedback from the sales department on the client.
For clients that fall into one of these categories, the company thinks businesses should be up front with their customers and either accept order only through cash on demand or no longer accept orders after their current order is completed.
In anticipation of the end of the year, the company released a blog on the topic for more information:
About C2C Resources:
C2C Resources is a global Commercial Debt Collection agency headquartered in Atlanta, Georgia. The company collects commercial debt on behalf of their over 25,000 clients and is considered one of the top agencies in the country. The executive team at C2C brings more than 60 years of experience helping businesses collect their accounts receivable.
C2Cs powerful combination of Profit Maximizer, InfoMax Collection System, and Legal Forwarding Edge, can help your company be more effective with your own in-house collecting and maximize recovery of accounts turned over for collection.