REDUCE THE UNPAID RECEIVABLES: THE CUSTOMER RELATIONSHIP IN THE HEART OF GOOD PRACTICES
20 July 2009 by Céline TercierAn article published by the French magazine “Journal du Net Economie & Management” on July 11, 2009 starts by reminding that the prevention of the unpaids is a very important stake for every business manager. In spite of real progress in the prevention of this risk, in particular with the crisis, an evolution is necessary especially in the implementation of good practices and relevant indicators.
Among the ‘good practices’ recommanded by the Sylvain Gros-Désirs, the journalist who wrote this article, let’s point these ones:
- All the staff must work together to avoid the unpaid receivables (from the sales, when they negociate the means and the terms of payments, to the credit managers when they collect the money)
- It’s important to be aware of the main issues that can have a consequences on the cash collection ( invoices , follow-up, claims…)
- It’s necessary to settle various indicators that fit to the company . The DSO (Days of Sales Outstanding) are important but not enough : other indicators such as the cost of the financing of receivables or the rate of the delays, allow to estimate the performance and to anticipate the failures.
- Cash collectors teams have to anticipate the dates of payment and contact each client, and do a ‘pre-follow-up’ job : to do that job efficiently, they have to collect first all useful information about each client to know him better, and to adapt its methods to each one.


