While accounts receivable (A/R) is a mystery to many, it shouldn’t be. It really is the script your banker will be reading from so she knows your story.
Let’s face it, knowing who you owe and who owes you money is critical to the operation of your enterprise. That second part is especially important as if you don’t have income you can’t pay the outgo.
Your banker wants to know several things that they can discover from you’re A/R sheet:
- Who owes
- For what
- How much they owe
- How frequently or faithfully they pay
- The last time they paid
- How many customers
- How long you’ve been in business
This record of payment reassures the banker that you are a good risk as well as have the resources to repay your line of credit or outstanding loans.
For more on how to develop and implement an overall financial strategy, call or write to us. TFO Solutions is dedicated to helping entrepreneurs and business owners with their finances from the back office to the boardroom.
The TFO Team
(photos courtesy of Upsplash)