1. For controlling the debtors, never forget to record the debtors.
2. Sending reminding letter is a good way to receive all amounts on maturity. Sometime, any debtor can forget about his payment.
3. Take help of collection agencies for collecting money from default debtors.
4. Reward the debtors who pay fastly by giving high discount out of his given amount.
5. To reduce the stress on working capital by making provision for doubtful debt account.
6. Never sell goods on credit to those debtors who did not pay previous debts.
7. Try to short the debtors’ collection period. It will be helpful to increase liquidity.
8. Make good relation with good debtors by sending gift on festivals.
9. Calculate the debtor turnover ratio. It shows the return on the investment in the form of credit sale to debtors. Try to compare it with previous figure.
10. Use advance techniques like calculation of opportunity cost of fund block, saving in cost of debtor investment and equilibrium of debtor investment for effect control over receivables.
2. Sending reminding letter is a good way to receive all amounts on maturity. Sometime, any debtor can forget about his payment.
3. Take help of collection agencies for collecting money from default debtors.
4. Reward the debtors who pay fastly by giving high discount out of his given amount.
5. To reduce the stress on working capital by making provision for doubtful debt account.
6. Never sell goods on credit to those debtors who did not pay previous debts.
7. Try to short the debtors’ collection period. It will be helpful to increase liquidity.
8. Make good relation with good debtors by sending gift on festivals.
9. Calculate the debtor turnover ratio. It shows the return on the investment in the form of credit sale to debtors. Try to compare it with previous figure.
10. Use advance techniques like calculation of opportunity cost of fund block, saving in cost of debtor investment and equilibrium of debtor investment for effect control over receivables.
No comments:
Post a Comment