Revenue on paper means nothing if cash isn't in your bank account. For growing Kenyan businesses, managing cash flow is often more important than managing profit.
Track receivables weekly, not monthly. An aging report showing debts at 30, 60, and 90+ days gives you an early warning system for collection problems.
Negotiate shorter payment terms with new clients — net 15 or net 30 instead of net 60. Offer a small discount for early payment to incentivize faster settlement.
Build a cash reserve equal to at least two months of operating expenses. This buffer lets you survive slow-paying clients without taking emergency loans.
Outsource collections for accounts that are 60+ days overdue. The cost of a collection agency is almost always less than the cost of a write-off.
Faways Solutions provides bookkeeping and credit control services that give you real-time visibility into your cash position. Contact us to learn more.