TEC, an international organization of CEOs that's headquartered in San Diego, reports that 60% of the 195 small and midsize companies it surveyed last fall had taken steps to improve their company's speed of collection. Here are the methods they relied on.
Hiring a collection agency or a lawyer 10%
Making software or computer- system enhancements 13%
Denying credit to companies with bad credit histories 14%
Making changes in financial staff or management responsibilities 20%
Involving sales personnel in collection efforts 28%
Following up on outstanding invoices faster or more frequently 52%
Note: More than one answer was permitted.
Source: Survey by TEC, in San Diego, and Inc. magazine, November 1995.