Slow payers cost you real money

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.

Here’s how – 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 – talk to us about what would work for your business
  • Be straight up about discussing alternate invoicing patterns, payment options and terms.

 

Get in touch with a Moore Stephens Markhams business advisor to discuss ways to work on slow payers.

Published winter 2017.

Serious about your success?