Improving the collection period involves several strategies:
Invoice Promptly: Sending invoices immediately after the delivery of goods or services can expedite payment. Offer Discounts for Early Payment: Incentivizing customers to pay sooner can reduce the collection period. Follow Up Regularly: Regularly following up on overdue invoices ensures timely payment. Assess Customer Creditworthiness: Performing credit checks on new customers can help avoid potential bad debts.