How do you recover old outstanding without losing customer ?

If you have continous follow ups with accounts department you will surely build a rapport so when you pass by the customer just say Hello. Everytime customer will see you there will feel to release payment pending so that way rapport is also build and you get your outstanding as well.

This is an important and interesting question as i belive every business has this in the back ground as most small-medium businesses work with clients who either pay after invoicing or after a certain period.

the way to look at it would be by ensuring you are keeping on top of it and also at times pointing out to clients that they too are businesses and how would it work for them if their customers or clients were not paying on time.besides if as a business you can build successful relations with your clients they would surely understand that the service you are providing comes at a cost and keep on payment terms.

Alternatively having a strict credit system would ensure the payments are made on time.Sometimes it depends on the nature of teh business the volumes they spend the pressure it put on your own business etc.