Mismanagement of cash flow is the single biggest reason that small businesses fail.

A good credit control system is an essential part of any business' accounting procedures. Credit checks should be conducted on new customers that request credit.

To credit check your customers, you can approach their bank for a reference; use a credit reference agency; or ask their other suppliers. Before extending credit, establish how solvent the customer is and whether they are likely to have any problems paying their invoices on time.

If you experience a slow or delinquent debt, the ACCC and ASIC offer joint Debt Collection Guidelines for debt collectors and creditors