Create Cash-flow by Managing Your Invoices Right…

PMF Bancorp understands the importance of managing your company’s receivables effectively to make sure you are paid in a timely manner. Here are some great ideas in creating more Cash-flow through better collections.

Accounts Receivable Management Los Angeles
Accounts Receivable Management can minimize your need to borrow. We can help!

We are not suggesting that your company acts like a collection agency or use harsh tactics. We believe, however, that having a dedicated employee to monitor and follow-up on clients invoice balances is a priority. Any company that is doing over $1 million in sales should already have such an employee in place. If not, PMF Bancorp can help with recommendations and training suggestions to further the process along. The first thing PMF provides when starting the receivable finance / factoring process is an evaluation of the company’s invoicing and process of collection. PMF often finds its customers are not invoicing correctly from the legal language used in invoice to the method of processing for best collection times. Invoicing and collecting is an art to a certain extent and without an experienced person setting this function in a company, there will be inefficiencies guaranteed.

Often, PMF Bancorp can execute a portion of the collection process because our clients want a profession intermediary to make certain funds are collected most efficiently. We often do a better job because the invoice customer knows we report to all the business reporting agencies, we have legal means and the experience to collect which most customers do not want any part of. PMF’s function to assist our clients with their account receivable management ensures efficiency in collections and handling the clients in a delicate, but professional manner.

Depending on your customer base and the specific industry, hiring a full-time employee that manages the receivables can be a very successful strategy when used in conjunction with a bank with expertise in receivable management as well. As we all know, although profit and productivity reflect the bottom line, not every business operates in the same manner. There are certain rules that apply across the board. Simply following up with customers and making status calls 5 days before an invoice is due can help but often is not be the complete solution. Having a full-service financial company like PMF Bancorp in place to make follow-up calls often gets the attention of your customers and clients more effectively. Since they do not have a direct relationship with the bank, they become more aware of the call and often more willing to respond. For more information on techniques to expedite and ensure your company’s cash flow, please click here to learn more receivables management.

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