Who's taking advantage?

 

There is a growing tendency on the part of companies to actively delay payment to their suppliers.

Slow payers monopolise profits and starve creditors of much needed cash which makes policing of receivables critical.

When a customer exceeds the agreed payment terms, they are in reality using the supplier as an alternate (unsecured overdraft).

Left unchecked this situation can easily 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 Greek bail out 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 take back control.