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Cooke Consulting
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Hi Mediaman,

Debtor finance in my opinion should be engaged as the exception rather than the norm, considering the costs you have already described it would seem a shame to give up on a percentage of revenue when really it appears you just need some adjustments to your business.

I get the distinct impression that you do not want to risk ‘rocking the boat’ with your clients, which of course is a fair call for any business to make.

However, clients also need to be educated that your payment terms are ‘Your’ payment terms which they accepted when their account was set up. I assume that there is / was a contract / terms of service agreement in place?

Businesses, especially large corporates tend to be slack when paying which is why it is important to also build a relationship with the department or person that is actually going to pay your invoice and it may not happen overnight but repetition is key to the education process and it won’t take long for them to understand that if payment is not received by x date then they are going to get a phone call from you.

I’ve seen many businesses of all shapes & sizes that tend to take care of the business plan, marketing strategy etc etc but all too often forget the debt management strategy – You can have all the sales in the world but unless the money is collected it means nothing.

With regards to the additional part of your post – believe it or not it’s really simply just a matter of calling at the right time, finding the right person and asking the right questions.

I hope this may be of some benefit to you.

All the best.