There is no one way to speed up debt recovery and boost cash flow. Just the same as there are no get rich quick schemes.
Unfortunately debt can happen to anyone. Understanding how it happens and ways you can work to speed up the debt recovery process is essential.
As a business owner managing your cash flow is essential. Being able to pay your invoices in a timely manner ensures you are as safe as possible from debts. Not all debt is bad, for some businesses it is necessary to have business loans at the get go. However, it is key to ensure you keep on top of your repayments otherwise you will end up with a default letter and may find yourself contacted by debt collectors.
How to speed up debt recovery
If you find yourself with a letter or email from a debt collector don’t stress too much. Businesses are only trying to obtain money that is owed. There are a couple of things you can do to speed up the recovery process and remove that debt from hanging over your head.
Increase monthly payments
The first thing to consider is if you can make larger payments than the minimum amount. This will enable you to pay off the debt far quicker than if you stick with minimum payments.
Cut costs to free up finances
If you are unable to instantly make larger payments, consider cutting costs to free up your finances. You may be surprised at how much additional money you spend as a business without realising. Cutting costs is an easy way to free up finances which can be allocated to your debt repayments.
How to boost cash flow in your business
Keeping your business in the black is key to good cash flow. While it is important to pay your debts, you also need to keep cash flowing into your business in order to grow and have an income.
For many people, once they have paid off their debts it is back to the same spending habits. However, this isn’t the best option for your business. If cash flow was an issue in the beginning then you need to look at how you can boost cash flow in your business.
The first thing to look at is your business spending. If you haven’t already cut costs in order to repay your debts, you should consider doing it to protect your business cash flow. Reducing your spending can be as easy as removing unnecessary subscriptions and services and altering your supplier lists.
Increase service costs
Something many small businesses are guilty of is undercutting themselves. Many do not know their own worth and so keep their prices at stupidly low levels. If you are good at what you do then you need to be paid for it. Increase your service costs so that it includes a healthy profit margin and room for error.
Add extra services
Another way businesses can easily boost their cash flow is by adding extra services to their business offerings. If you have other skills that can be utilised in your industry then add services that people will need and want.
Adding extra services allows you to add more value to your clients and become a one stop shop in your industry. Not only does it add more value to your business it also increases your cash flow. Debt recovery doesn’t have to be complicated. Here at My Debt Recovery we work with you to find the best possible arrangement in relation to your debts. Contact our team today to see how we can help you recover unpaid debts.