All businesses operating in today’s climate need to have constant and rigorous focus on their commercial exposure.
Operating in the current competitive background it is very difficult to contemplate turning away business especially from a customer of long standing.
However, there are times when subsequent events show that on occasion the best business decision was to leave it to your competitors.
There is little merit in vying for “prestige” business if it does not allow for an acceptable commercial return.
At the same time when stricter controls are in place over such elements as payment terms and credit limits the result is likely to be a reduction in turnover.
The upside of such fiscal discipline carries its own rewards. Avoiding defaults by customers is the surest way to protect the company’s bottom line at a time when profits are hard won and losses easy to establish.
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