You know you have to get your debtors to pay, but do you understand the true impact of slow payers? Without a realistic picture of the direct and indirect costs of slow payment, your debt management practices may hurt your business. You may:
• Reduce your cashflow.
• Create a snowball effect – if debtors think you’re relaxed about payment, you encourage them to be slow.
• Build up an increasing number of debtors, leading you to let smaller debts slide.
• Chew up valuable time and resources in managing slow payers and following them up.
What you can do
• If credit reporting information shows a customer is a slow payer, you can put tighter terms in place.
• Use online tools to manage receivables.
• Be straight up about discussing alternative invoicing patterns, payment options and terms.
If you think your debtors are out of control and you need help, get in touch with us and we’ll be happy to offer you some solutions.