The traditional response from recalcitrant debtors was “the cheque is in
the post”. This generally bought some time as 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.
Irrespective of any other considerations it remains crucial to keep full
control of receivables.
At the very least 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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