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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