There a couple of things I’ve discovered over the last few months. The first is that according to the Mayan calendar, the world as we know it will cease to exist in 2012. The second thing is that all substances be it animal, mineral or vegetable are really billions & billions & billions of molecules vibrating at very high speed and the way we get our shapes is by the speed that these molecules vibrate.
While interesting as these facts are I can hear you ask what have they got to do with credit control. On the face of it, not a lot, but if you look a bit deeper the Mayan Calendar you’ll find the answers too many of your everyday cash flow problems.
As I mentioned, according to the calendar the world as we know it will end in 2012, the question is what can we learn from this. Well if the world as we know it does end, will it be that the world stops turning and all the molecules stop vibrating, in which case go out and enjoy yourselves and don't worry about your unpaid invoices. I prefer to think that when they worked out the calendar they couldn’t think past 2012.
However, just in case I’m right and the world continues in to 2013 and beyond and you intend to remain in business, then you are going to have to make sure that you have a firm credit control policy. I heard this week from “John” who had attended one of my credit control workshops. I was delighted to hear that since he has put in to practice the advice I gave, his debtor days had dropped to zero and more people are now paying early.
I had explained that if you wanted to improve your debtor days, the best way was to notify your clients that on ex day prices would be going up by say 10%. However, if they could settle their invoices within 7 days then the price rise would be held at 5%. If they could pay on delivery, the old price would remain. "John" was concerned that he would lose his customers if he put up his prices, but decided to do it as the majority of his "customers" took 60 days + to settle. He was amazed that no only didn't the clients object, the majority took advantage of the lower rate and now pay on delivery.
For those who haven’t yet attended one of my workshops the next ones are being held on Thursday 10 March at the Herts Business Expo being held at the Ramada Jarvis Hotel. To attend you will need to register by visiting www.thehertfordshirebusinessexpo.co.uk and follow the link.
If you would like to learn more about David and or Deanem Collections Ltd visit www.deanemcollections.co.uk and find out why we are "The Liferaft in the sea of Debt"
While interesting as these facts are I can hear you ask what have they got to do with credit control. On the face of it, not a lot, but if you look a bit deeper the Mayan Calendar you’ll find the answers too many of your everyday cash flow problems.
As I mentioned, according to the calendar the world as we know it will end in 2012, the question is what can we learn from this. Well if the world as we know it does end, will it be that the world stops turning and all the molecules stop vibrating, in which case go out and enjoy yourselves and don't worry about your unpaid invoices. I prefer to think that when they worked out the calendar they couldn’t think past 2012.
However, just in case I’m right and the world continues in to 2013 and beyond and you intend to remain in business, then you are going to have to make sure that you have a firm credit control policy. I heard this week from “John” who had attended one of my credit control workshops. I was delighted to hear that since he has put in to practice the advice I gave, his debtor days had dropped to zero and more people are now paying early.
I had explained that if you wanted to improve your debtor days, the best way was to notify your clients that on ex day prices would be going up by say 10%. However, if they could settle their invoices within 7 days then the price rise would be held at 5%. If they could pay on delivery, the old price would remain. "John" was concerned that he would lose his customers if he put up his prices, but decided to do it as the majority of his "customers" took 60 days + to settle. He was amazed that no only didn't the clients object, the majority took advantage of the lower rate and now pay on delivery.
For those who haven’t yet attended one of my workshops the next ones are being held on Thursday 10 March at the Herts Business Expo being held at the Ramada Jarvis Hotel. To attend you will need to register by visiting www.thehertfordshirebusinessexpo.co.uk and follow the link.
If you would like to learn more about David and or Deanem Collections Ltd visit www.deanemcollections.co.uk and find out why we are "The Liferaft in the sea of Debt"
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