Debtors are clients THEY ARE PEOPLE WHO OWE YOU MONEY……debtors stopped being clients the moment you have delivered the goods or services, or they have received the subscription or service or whatever you offer, AND NOW HAVE AN INTEREST FREE LOAN FROM YOU FOR THOSE GOODS AND SERVICES. IF YOU UNDERSTAND THIS THEN YOU HAVE A POSSIBILITY TO INCREASE YOUR CASH FLOW by managing these businesses that owe you money. Don’t get me wrong, they are usually remaining as clients but that’s until the nest request for services and products that you supply. SO HERE ARE 5 THOUGHTS ABOUTING DEBTORS ONE Never ever give credit TO A CONSUMER. They have too much power to muck you around, and you don’t have the same power and rights to collect the money as you do in Business to Business relationships. If you are doing work for them over time say building a kitchen, make sure you have Credit Card details, so you get paid as you go. TWO MANY LARGE COMPANYS MORALS AND ETHICS IN AUSTRALIA ARE DISGUSTING….Too many large companies, especially those privileged with Tier level contracts with governments, seem to focus on bludgeoning small businesses to complete work and then and then be lousy about paying them. Too many businesses in pain are suffering because of crappy payment from large companies…so in terms of having a large company as a debtor - be careful we are in Australia and not New Zealand where things get “sorted” itnews.au/News/355868,transfield-nz-subbies-down-tools-after-no-pay-for-weeks.aspx THREE Get to know the people who are in accounts payable with your debtors. GET AN INSIDE ALLIANCE TO HELP YOU GET PAID FIRST….Businesses struggle which means they pick and choose who get paid, be the person people love to pay. FOUR Set out your terms and agreements first. THIS INCLUDES ALWAYS GETTING A PERSONAL GUATANTEE WITH CAVEAT RIGHTS OF THE DEBTORS PERSONAL ASSETS. The terms in any good credit application should be a “promise not a threat”. THIS DOESN’T MEAN YOU ARNT FLEXABLE WITH THOSE WHO MAY BE SLOW BUT ARE COMMUNICATING WITH YOU, usually someone who will struggle or is slow and contacts you need to be watch but can be worked with.(Don’t forget to do the same for others if you are going to be late) FIVE – AND THIS IS THE BIG ONE Never give the debtor a reason to complain or make a claim – BE THE BEST YOUR BUSINESS CAN BE FOR EVERYONE, and keep proof, all my clients working on Building sites photograph their work every day, every little piece of it, not only is this part of work flow systems we put in but STOPS BULLSHIT CLAIMS. If your work and service is fantastic, then you never have a reason not to be robust about collecting your money. If you want to discuss the workflow systems I just mentioned, trouble with debtors or any issue, give us a call at Your Business Angels. It free to come in and meet us – just phone 03 98982559.
Posted on: Mon, 30 Sep 2013 03:19:56 +0000
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