It's likely that at this very moment - someone owes you money! I'm hearing from many business owners that one of their greatest challenges in today's economy Is collecting receivables.

Here are some tips to help you reduce your receivables and collect more of the money that is owed to you.

One - Start by reviewing how much credit your business has extended to customers and how that's impacting your cash flow. You may want to renegotiate some of your terms with existing customers and limit the credit you extend to new ones.

Two - When offering discounts to customers who pay early write on the invoice the actual dollar amount they would save rather than a percentage. For example if you pay by September first you owe one hundred dollars - by September thirtieth one hundred and twenty dollars. Seeing actual dollar amounts greatly improves the chances your customers will pay you sooner rather than later.

Three - Be willing to negotiate a payment arrangement with slow paying customers who are good customers. Collecting something is better than nothing and it creates goodwill with good customers who may be experiencing temporary cash flow set backs.

Four - Bill often. Rather than billing once a month - establish a payment schedule with the customer from the beginning that's based on certain milestones or deliverables and bill accordingly. Staggering your billing among many customers will help to improve your cash flow.

And finally if you're slow paying your bills because others are slow paying you contact the people you owe money to and discuss a way to resolve the situation. They'll likely be more willing to work something out with you if reach out to them first.

I'm Deb Neuman for WABI TV 5 News

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