Megabus provides the following tips for Tyre and Mechanical Workshops seeking to improve cash flow

For Tyre and Mechanical workshops, cash flow is the lifeblood of your business. While growing sales is always a goal, it is equally important to ensure the money owed to you actually arrives on time.
Bad debts often reveal themselves too late, after the work is done and the invoice goes unpaid. As the saying goes, “An ounce of prevention is worth a pound of cure.”
Managing your trade accounts proactively, both new and existing, helps ensure consistent cash flow and reduces the risk of unpaid invoices.
Megabus recommends that you consider some practical strategies to help you take control, such as the following:
• Start smart with new customers: always request references and assess credit history before offering 30-plus day terms. Perhaps, you can also begin with COD, seven- or 14-day terms until you have established trust.
• Set credit alerts: configure your system to notify you when a customer reaches their credit limit.
• Take timely action: do not hesitate to change an account’s status, such as placing it on hold while you follow up on overdue amounts.
• Stay visible: send regular account statements (weekly if needed) to keep customers aware of their outstanding balances.
• Keep records: log every collection effort in your system, including date, contact person, and promises made regarding payment.
• Encourage early payment: offer small discounts for prompt payments as an incentive.
• Reward loyalty: consider providing product or service discounts to trade customers who consistently meet order volume targets.
• Avoid disputes: make it mandatory to record order numbers with each sale to prevent disputes on overdue transactions.
• Simplify statements: if customers operate multiple locations, consolidate their accounts into one overall statement to make management easier.
• Self-serve: give your trade customers the option to order via an online portal, available 24/7 for their convenience.
Megabus says pivoting to these strategies can reduce the risk of bad debt and ultimately strengthen your cash flow, freeing you to focus on what really matters: running and growing your business, not chasing overdue invoices.

For more information, visit www.megabus.com.au