Debtor s right to option


debtor s right to option

Valuing a business Managing debtors Debtors are people or businesses who owe you money. Proper management of your debtors will help you get paid faster and prevent bad debts.

debtor s right to option

Prompt collection of debtors' accounts will also help you maintain a healthy cash flow. Giving your customer an invoice or bill after they have supplied a product or service is a way of offering credit, since you have to debtor s right to option for the payment. By giving your customers time to pay for goods or services already delivered, you are making it easier for them to make purchases.

debtor s right to option

This will increase sales, but will reduce the cash flow critical to your business. Managing debtors is often referred to as credit management, and includes: collecting debts on time setting credit limits and payment terms making credit applications and credit checks enforcing a clear credit policy considering debtor finance. Debt management also involves keeping debtor records — this is a legal tax requirement.

debtor s right to option

There are also laws governing how you are allowed to follow up debts with your customers. Last reviewed: 17 Jul Last updated: 25 May

debtor s right to option