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To business managers who want to maximise cash flow This page is addressed to those managers who find debt collection a difficult, unenjoyable, and thankless task. A formal debt collection process is fundamental to maintaining cash flow, yet it is often avoided by schools. There are many reasons for avoidance: - You may feel uncomfortable dealing with families who threaten to leave the school if forced to pay their debts
- You may be wary of possible negative publicity if you take a harsh line with defaulting families
- You may feel uncomfortable enforcing payment of debts in cases of genuine hardship
- You may not like being inconsistent in the management of individual debts
In fairness, it's more difficult to collect debts in a school than a commercial environment because a school cannot stop supply or put a family on “COD” terms. Schools sometimes try to address the issue by moving to the option of billing in advance. The solution, however, lies in consistency of policy and procedure. By following a consistent, systematic process you can minimise your outstanding accounts... and guarantee your cash flow. How we can help - Assist with the drafting of "fair and reasonable" rules in regards to families meeting their payment commitments
- Review enrolment forms to make sure terms & conditions are accurate, drivers' licences are recorded, and all documents are signed
- Assist with training in the successful methods of debt collecting within schools
- Recommend the system “flags”, reports, and letters that are needed to facilitate the debt collection process
- Provide written debt collection procedures
- Provide a resource with 30 years debt collection experience, including 18 months in a school environment
What it will mean for you - You will maximise cash flow
- You will minimise outstanding debt
- You will be seen by parents as firm but fair, and consistent in your approach
- You will be supporting the silent majority who pay on time... because it is their children who suffer when you don’t have the cash flow to spend on curriculum initiatives
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