Financial_Solutions’ blog

If there are simply too many "exceptions" to the rules, there are NO REAL RULES. When Mary Jane listens sympathetically to your customer about their financial woes, and agrees to extend credit AGAIN , when past due balances remain.....her intent may be kind...but your financial stability is in crisis. The next month Billy Bob may be the compassionate ear that allows them again, not see your company as a priority......so they pay YOUR COMPETITION instead of You ! By the following month, credit is suspended, but they simply buy MORE from your competition...who they were paying all along out of respect and fear of consequences due to a strong well balanced policy.

Of course there can be Exceptions to The Rule...however the one making the exception should not be EVERYONE.

A clear , precise policy and process will earn , not only respect from your clients, but a strong receiveables. Too many times, your own internal staff believes that being nice, will hold your place with customers. But lets think about this.

Think of two children in two separate family's. One child can come and go at will, do as they please. They make excuses for their wrong doings and turn on the tears and all is well again. The parents may yell but there are never any real consequences. When that child is faced with making a decision between right and wrong, they do not consider their parents consequences into the factoring decision because well, there will not be any.

Now the second child has a structured, more disciplined family unit. When they disobey, there are consequences. When that child is faced with a decision of right or wrong, they DO take their parents consequences into factor.They actually respect their parents because their parents show they care about the child and their household stability.

If your staff allows there to be no consequences when they break credit terms...allows them to continue to receive product without payment...and Your competition enforces their policy...and makes them aware of the consequences that are about to occur, who will your client pay?

If you need assistance with evaluating your internal receivables policy or even creating one, give me a call, Ill help for FREE! If you need assistance collecting on slow pays, no pays, invalid disputes, or you simply need to clear your older aging buckets I can assist at NO upfront cost! My world wide organization offers a No Cure for you, No Pay for Us incentive!

While the Government is handing out "bail outs", I offer solutions. If you take the proper precautionary measures on the front end of your Receivables process, your back end and BOTTOM LINE will stand strong, and you will gain the respect and loyalty of your clients!

This is a group where Financial Executives from Businesses World Wide can meet and discuss the challenges, changes and solutions that 2009 brings to the table!

"If You dont Risk Anything...You risk even MORE!"

                                          What is YOUR favorite quote?Dylan