Sales are usually pretty straightforward. Once the order has been filled, the sale may seem as if it is complete. But on the back end, managing payments can be tricky. Failing to manage collection and protect receivables can have serious consequences on your cash flow and your ability to grow your business. Consider this: if you have a customer that defaults on a debt of EUR 100k, and your net margin is 5%, you will need to generate additional revenues of EUR 2m to make up for the lost cash flow.
Working in in the Middle East, I see many small and medium-sized enterprises (SMEs) that have opportunities to expand their business but lack the necessary visibility on their order-to-cash cycles and securely manage credit. Taking the time to draw up a solid credit management strategy can help these companies seize more opportunities.