In this
current climate more and more Customers are actively delaying payment to
Suppliers. Slow payers monopolise profits and starve creditors of much needed
cash. Accordingly policing of receivables is critical.
When a Customer
exceeds the agreed payment terms, they are in reality using the Supplier as an
alternate (unsecured overdraft). I have seen this situation spiral out of
control so that in a worst case scenario the Supplier is forced to keep
“supporting” the errant Customer for fear of realising a bad debt. Think of the
parallel to the current Greek situation – it is a slippery path.
Take a long
hard look at your accounts receivable – are you happy to see 30 days drift into
60 and beyond? Have you considered the damage that is being done to your
company’s financial position?
Ask
yourself “who is getting a free ride?”
It may well
be that you conclude that an overall appraisal of your business is overdue -
this is where I can help.
Why not get
in touch with me at gordon.blackburn1@btinternet.com and I’ll help you get back in control.
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