Question

Discuss the measures a business can put in place to try to rectify a poor payment culture by its debtors. (9)Marks

Answer 1

1. Reduce Trading Terms.
2. Ask for a deposit.
3. Hire a part-time debt collector or restructure.
4. Remove 30,60,90+ Days from statements.
5. Offer better terms for payment upfront.
6. Charge interest for outstanding debt.
7. Cease supply for non-payment.
8. Quote Upfront.