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Did you know? 1 in every 2 small businesses in the US struggle because of customers that can’t or won’t pay. This creates an even larger problem for these small businesses because it affects their cash flow (which is the ultimate thing that small businesses must have control over). If these businesses aren’t receiving the money they are owed, it puts a major hitch in their business operations. Small businesses need to aim to solve this issue and take care of it from the very beginning. As a small business owner, learn how to strategically manage your accounts receivable in these 5 steps.Taking Charge of Your Accounts Receivable in 5 Easy Steps

1 – Extend credit to the RIGHT customers – Many of your accounts receivable headaches can be prevented by only allowing customers who can be responsible to operate on net terms. We understand, though, that this can be hard to predict. However, take every possible precaution you can. How? Create a written credit policy, make sure you have a credit application, check customers’ credit before extending and operate on COD (cash-on-delivery) terms with all new customers. Allow them to earn the privilege of net terms. This sort of forethought is the first step in stellar accounts receivable management.

2 – Always keep an eye on your customers – You should keep a continuous watch over your customers’ finances. As you know personally from running your own business, finances fluctuate, end of story. A once loyal customer can run into financial troubles and all of a sudden turn into a delinquent account. Prepare yourself. Monitor you customers’ credit continuously to be aware of any red flags (judgments, suits, liens or bankruptcies are good examples). This will allow you to react quickly and immediately switch that customer to COD so you don’t find yourself with a delinquent account. Accounts receivable can always be better managed the more on top of it you stay.

3 – Keep your customers in the know – Let’s face it, we’re all human. We’ve got a lot going on and it’s hard to keep everything line. The best way to get your customers paying on time is to make sure they remember when to pay. Don’t just send them the initial invoice, but follow up with payment reminder letters (or emails). This will put you back on top of your customer’s payment priority list. Keep these contacts friendly and appreciative so the customers enjoy getting them. Excellent accounts receivable managers excel by always staying on customers’ minds.

4 – Make you customers love paying back – The more options and the easier you make it for your customer to pay you back, the more likely they will. What do we mean? Consider offering payment installment plans to customers. Although not ideal, giving them the opportunity to spread out smaller payments might be the key in getting your money, instead of them not paying at all. Also, definitely make online payments available for your customers. If they can simply enter their information in online, you’ve just made the process that much more simple (and cut out the waiting time for the mail).

5 – Don’t hesitate to get help – The longer you wait, the harder it is to collect. Learn to understand when an account is hopeless and it’s time to turn it into the hands of a professional. Although this should certainly be the last, final stop in your process, don’t hesitate to go there. And remember, you have options. You can sell your invoices to someone else with invoice factoring. You can look at calling a collection lawyer. And of course, you can send you accounts to a collections agency.The truth is, accounts receivable is never a simple process, but the more you take control of it, the easier it can be. Small, simple steps and using awareness and precaution can help make huge improvements in your customers’ payment behavior. Start taking charge of your accounts receivable today.We want to know what you think! Do you have any accounts receivable tips that have helped you collect faster from your late paying customers? This list is a just a glimpse. Check back in a few weeks for 101 ways to optimize your accounts receivable management!

Canadian statistics have revealed that; over time and in the wake of each new day, the cost of acquiring a decent home has been rising exponentially. It’s increasingly becoming harder for the average persons to acquire homes particularly in the prime areas of every locality. For that reason, more people have resulted to buying mortgages as a gateway to owning their dream homes. Mortgage is a financial plan which enables willing buyers to own their dream houses through remitting affordable sum of money for a long but fixed period of time. Although mortgage is meant for your own good, you might fall short of experiencing its benefits by not following the stipulated terms and conditions to the letter. To be on the safer side, you need to evaluate important mortgage guidelines like:Preliminary InformationThe most basic yet ignored step which must accomplished before purchasing any mortgage plan is on understanding mortgage concepts.

The concepts you acquire will save you from being misled by dishonest agents. Even though mortgage Nova Scotia providers have a reputation of being honest; you must take initiative to understand the financial situation that will characterize the period for which the mortgage contract will cover. Having all facts before hand helps an individual prevent disappointments through creation of long term financial solutions.Market ResearchA place like Dartmouth may have a number of mortgage providers hence the need to find the best among them all. Mortgage Dartmouth service providers include: banks, brokers, financial corporations and specialized mortgage companies. Take time and visit all these mortgage providers to understand how they differ from one another. Depending on how you have your financial goals spelt out, pick the mortgage provider with financial plans that best suits your taste and preferences.General StructureMortgage Nova Scotia may seem affordable and straightforward but that shouldn’t be considered as a reason enough to forego examination of its general financial structure. Always commit to memory that, picking the mortgage with the lowest interest rate doesn’t at all times amount to getting the best deal. You should therefore include other factors like mortgage processing and origination fee to decide on your best choice.Personal ReputationJust like in Nova Scotia, mortgage Dartmouth providers are quite picky with whom they offer financial support. Before being offered mortgage, you will be required to provide documents revealing your current financial condition and credit worthiness. Failure to repay mortgage installments for a fixed period of time may be result in the contract being nullified and the advanced property being confiscated by the lending company.

You might also forfeit the amount paid in the period prior to having the contract become invalidated.Other important factors that you must fulfill before getting mortgage include: verifying your identity, revealing your social security number, giving details regarding your bank account and information on income tax papers.In view of the fact that mortgage plan is like a loan, you will be required to have financial strategy on how to finance the deal. Work closely with your financial advisors and focus on completing the required balance in the earliest possible moment. That way, you will be steps closer to owning your dream home.