Get paid on time, every time
Posted 12 June 2008 at 8:03AM by Ian Betteridge in Investment and finance
If there's one thing that kills more small businesses than anything else, it's cash flow problems. Getting paid on time can make the difference between surviving a down turn, and going out of business.
So how do you ensure that you get paid on time? In an article which originally appeared in Metro called "It's time for payback", Jayne Atherton spoke to commercial and litigation experts The Park Lane Partnership and credit management company Intrum Justitia - and got some advice from the experts.
Click here to find out more.
Tags: bt, bt broadbandoffice, cashflow, jayne atherton, metro
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Comments
2. At June 12, 2008 1:48 PM, James wrote:
Some years ago I was a self employed Computer Systems Consultant working on a number of different projects each week - each project lasting about 6 to 8 weeks. A long time to wait for the money to come it.
The Companies concerned were Small to Medium concerns that were introducing Computers Systems for the first time.
I undertook the projects on terms and conditions that I was paid weekly upon receipt of my presented invoice.
The job did not proceed into the next week, unless the last weeks work had been paid for.
3. At June 13, 2008 11:15 AM, Deborah Johnson wrote:
Remeber we small busineesses have another tool to our debt recovery belt..The small claims court in Scotland now allows you to claim up to £3000. Something I have used on a debtor (which I do agree with the article to keep the lines of communication open), but after a ten month wait and 9 written requests for monies to be paid I made one phone call to the business asking the question 'Which sherrif Offices Court is closest to them as I feel we must progress this matter'..next day phone call to confirm cheque in the post..two days later money in the bank..cheque even cleared. I recommend investing the time in familarising yourselve with the small claims procedure so that you may use the information to put the debtor on the spot.
4. At June 13, 2008 12:52 PM, Bob Weston wrote:
Two methods come to mind to avoid this problem.
1/ for larger accounts maybe "factoring " could be the answer.
2/ Pro former invoicing or payment with order might do it.
Anyone can acheive high sales figures to people or companies who either do not pay on time, if at all. You may be better off not dealing with them.
5. At June 13, 2008 3:58 PM, Gareth Davies wrote:
I wonder how many people running small businesses who resort to the legal system for debt recovery find themselves not getting any repeat business from the organisation that they have taken action against? Far better to be a persistent pest and keep phoning every day, having a few cash flow issues, than someone who has lost business pursuing debt at a high level. I have two large customers that I know would drop me like a stone if I introduced invoice finance or interest charges on late payment.
Being in business has never been easy, if it was, everybody would be doing it and there would be even more late payers to chase!
6. At June 14, 2008 4:22 PM, Andrew Hill wrote:
I have found it relatively easy to obtain a CCJ but translating this into debt recovery can still be difficult if you are dealing with individuals as customers. Communication and staged payments are much more viable routes with litigation being a last resort. Never sue a 'man of straw'
7. At June 15, 2008 12:09 PM, Freddie Dawkins wrote:
Interesting comments from Intrum Justitia, who I know well. This isn't just a UK-based problem - it's endemic to most of the commercial world. What we've seen over the last 12 months in Europe, is that the largest, publicly-quoted companies, are the worst at collecting debt - and often the worst at paying. It's always smaller companies who get squeezed most but there really are things you can do to improve collections. It starts with Terms and Conditions. Keep them simple and clear.
Although my magazine is written for senior commercial and consumer credit professionals, there's a lot of free info for smaller businesses struggling to control their debtors.
If you want to learn more, take a look at my magazine's website -it's free to read at www.ccrworld.net
Freddie Dawkins
8. At June 23, 2008 7:36 PM, Btb Sales Training Ireland wrote:
I sometimes think that the people and companies that get paid on time are more often the ones that shout the loudest lol
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1. At June 12, 2008 9:24 AM, J G Dawson wrote: