Let me ask you something simple. If you had £100,000 sitting in your business right now, what would you do with it?
Hire that extra team member? Invest in marketing? Finally upgrade that system that’s been slowing you down?
Now, what if I told you that money might already be there, just stuck in your aged receivables?
As Warren Buffet wisely said, “I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.” And when it comes to improving cash flow, chasing aged debtors is one of those 1-foot bars. It’s not glamorous but it’s powerful.
The Quiet Leak in Your Business
Most entrepreneurs are wired for sales, not collections. We love the thrill of the next deal, the next opportunity. But that mindset often leaves money on the table, literally.
Chasing receivables becomes an afterthought, only triggered when cash flow tightens and panic sets in. Suddenly there’s a flurry of calls, emails and stress. And let’s be honest, it’s not fun for you, your team or your clients.
But what if we flipped the script?
What if you had a simple, proactive system that helped you stay ahead of the curve without the drama?
Start Here: Your Terms of Trade
First things first, check your credit terms. Are you offering 30-day credit just because your invoicing system says so? Why not 14 days? Or even 7?
You’re essentially acting as a 0% interest bank for your clients. That’s generous but is it sustainable?
Even a small shift in your terms can unlock cash that’s already yours. You don’t need to overhaul everything. Just start by reviewing and adjusting terms for a few clients. Ask the questions. See what’s possible.
Build Your Outstanding Table
Most accounting systems can generate an aged receivables report. But here’s the twist—don’t just look at the numbers. Break them down by age brackets and percentages.
For example:
| Days Outstanding | Amount | % Outstanding |
|---|---|---|
| 0–30 | £40,000 | 40% |
| 31–60 | £30,000 | 30% |
| 61–90 | £20,000 | 20% |
| >90 | £10,000 | 10% |
Now set targets. Not just to reduce the total amount but to shift the percentages. Focus on decreasing the older buckets. That’s where profitability starts to erode.
Eat the Frog: Chase What Matters
When it’s time to follow up, don’t get lost in ticking boxes. Focus on impact.
Which clients owe the most? Which ones are creeping toward 60 days? That’s where your attention should go.
This isn’t about cleaning up a spreadsheet. It’s about reclaiming your cash flow.
Systemise and Delegate
Finally, don’t let this be a one-time fix. Document the process. Assign ownership. Make it part of your monthly rhythm.
Because when you systemise, you build a business that works for you—not one that constantly needs rescuing.
Takeaway
Cash flow doesn’t have to be a mystery or a crisis. Often, the solution is right under your nose. Start small. Ask better questions. Take back control, one aged debtor at a time.
If this made you pause and think about the cash hiding in plain sight, don’t ignore it. Let’s talk about what’s holding your growth back and how to fix it. Book your free call today.
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