Is your business sending out the wrong signals – and paying the price?
“Small-and-medium-sized enterprises (SMEs) wait an average of two months to get paid by other businesses, and many cannot survive the problems caused by overdue payments.” So says the Guardian.
In an insightful piece called ” Avoiding overdue payments: top tips for your small business”, Manos Schizas gives some great tips on how to get paid on time.
There’s some sound advice and a big emphasis on credit management. But it was Tip #5 that caught our eye: ” Be organised about invoicing and collections”.
The key point – made very well by Manos – focuses on the psychology around payments. The bottom line is this: “Some customers look out for signs of disorganisation and use them to determine which suppliers they can get away with paying late”. Cunning eh?
And as Manos urges, “Make sure you don’t present yourself as the easiest or most deserving target.”
The Clear team would echo this point absolutely. (That said, we stress this only applies to the worst type of customer – not the normal or better ones.)
In the current climate, more than ever, getting your invoices organised is vital. Whether you’ve managed this or not, really shows.
If you submit your invoices on time like clockwork and chase up like clockwork … then even those less helpful customers are more likely to pay like clockwork. They realise there’s no room for manoeuvre. You’re the supplier who chases first, not the sloppy one they can get away with paying last.