The
traditional response from recalcitrant Debtors was “the cheque is in the post”.
This generally 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 payment run”.
Basically
the name of the game remains the same, buy some time - achieve a payment
extension thereby 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.
However,
all the signs are that the last months of 2011 will be a particularly difficult
period across all sectors – it will be vital to keep full control of
receivables.
Delays in
payment will impact on the bottom line, however the worst scenario is that
neglecting to strictly monitor a failing company could result in a total write
off.
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