Not so long ago the standard response from recalcitrant Debtors was “the cheque is in the post”. It traditionally bought some time as generally Suppliers met this response with a weary resignation.
Times have moved on and the latest mantra is “its set up for next week’s computer payment run”.
Basically the name of the game is the same, namely to achieve a payment extension effectively squeezing the Supplier’s margin.
Obviously it is a difficult balancing act between keeping the customer happy and managing your own company’s cash-flow.
Now more than ever it is vital to keep full control of Debtors.
Whilst delays in payment can damage bottom line, the worst scenario is that neglecting to monitor a failing company could result in a total write off.
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