Business is the art of jugging creditors

[pzz76077]

I've a client who I like in a sweet spot way, who's having a rough time of this recession.

They've just sent an email reply asking if I'd be so kind as to accept a delay in payment because they're having problems getting paid i.e. cash flow problems.

You know, I could go and slap their accountant about. You don't go around creditors telling them you've got problems paying bills. It's not a way to stay in business.

Can't remember who said it, but "business is the art of jugging creditors".

That got me to thinking, seeing as we're all in business, how would the members of the congregation gathered here today reply to a creditor querying an unpaid invoice?

My advice would be to ensure that you include specific payment terms in your next contract. Problaby too late for you now, bu I only ever sign if the specific clause "payment within 5 working days or 1% interest per day" is included. Doesn't guarantee payment, but at least everyone knows what they should be working towards.

Busisiness is brutal and only the strong survive. If you don't insist, you wont get!

PZZ

[darmstadt]

I get Frau D. to ring up any late paying creditors, that tends to do the job

[thunderlizard]

Same as everybody else probably: make up some flannel about technical delays implementing a new accounting system; for some reason your invoice has been marked for payment in 2011 not 2010 and I'll of course get that corrected in time for our next payment run (June 2010)...

[Tarquin Farquhar]

Happened to me last year and I learnt one important and painful lesson from it. No more work when an invoice is paid late until it is paid. I know it’s harsh, but you need to protect number 1. Last year a client with cash flow problems made me use up my reserve; eventually I was paid for about 90%, but very late. Unfortunately, the banks still aren’t providing basic credit, especially to agents and small ICT companies, so the agents and small clientcos are all trying to delay payments. Don’t play the game; you are not a bank and you are not a charity.

You are absolutely right, and it bears saying.

However, the OP asked

how would the members of the congregation gathered here today reply to a creditor querying an unpaid invoice?

[VectraMan]

I remember visiting my Father's company many a year ago, and he told me how he wrote out all the cheques at the start of the month, put them in envelopes, and then put them in a draw. He'd only send them out as the cash came in to pay them.

I did a small bit of work for a direct client a couple of year ago. We'd agreed 30 day terms, and on the 30th day I had to send a reminder email. They paid: by cheque, sent second class post. Every minute counts.

[Platypus]

You don't go around creditors telling them you've got problems paying bills. It's not a way to stay in business.

I disagree - it's a standard tactic which improves their cash flow at the expense of yours. It ensures they can pay their important creditors (heat, light, staff salaries) while still maintaining a healthy bank balance.

The "we haven't been paid so we can't pay you" line is used to evoke some sympathy and understanding from you, while they quietly shaft you.

My usual reply is that their cashflow problem is not my cashflow problem, and threaten immediate recovery. That should have the effect of putting you on their 'must be paid' list. Right now you are on their 'fick em' list.

[NeverBeenNorthOfTheM25]

Don’t play the game; you are not a bank and you are not a charity.

WHS.

Do you think they will help YOU out when you have cash flow problems?

Of course not. Its all about Number 1 in this game. The sooner you learn that the more of a man you will be!

[Mich the Tester]

I've a client who I like in a sweet spot way, who's having a rough time of this recession.

They've just sent an email reply asking if I'd be so kind as to accept a delay in payment because they're having problems getting paid i.e. cash flow problems.

You know, I could go and slap their accountant about. You don't go around creditors telling them you've got problems paying bills. It's not a way to stay in business.

Can't remember who said it, but "business is the art of jugging creditors".

That got me to thinking, seeing as we're all in business, how would the members of the congregation gathered here today reply to a creditor querying an unpaid invoice?

Happened to me last year and I learnt one important and painful lesson from it. No more work when an invoice is paid late until it is paid. I know it’s harsh, but you need to protect number 1. Last year a client with cash flow problems made me use up my reserve; eventually I was paid for about 90%, but very late. Unfortunately, the banks still aren’t providing basic credit, especially to agents and small ICT companies, so the agents and small clientcos are all trying to delay payments. Don’t play the game; you are not a bank and you are not a charity.

[threaded]

I've a client who I like in a sweet spot way, who's having a rough time of this recession.

They've just sent an email reply asking if I'd be so kind as to accept a delay in payment because they're having problems getting paid i.e. cash flow problems.

You know, I could go and slap their accountant about. You don't go around creditors telling them you've got problems paying bills. It's not a way to stay in business.

Can't remember who said it, but "business is the art of jugging creditors".

That got me to thinking, seeing as we're all in business, how would the members of the congregation gathered here today reply to a creditor querying an unpaid invoice?