We are going through the top tips to achieve a healthy cash flow and healthy relationships with your suppliers and customers, to ensure payment terms are met and that there is ultimately less risk for your business.
Our expert and podcast guest is Patrick Coghlan, who is the CEO of CreditorWatch (a commercial credit reporting bureau) and we quiz him on the aforementioned things, as well as industry trends and current economical difficulties.
Dynamic Business has covered several useful tips previously, which you can read up on here, or of which some are mentioned below:
- Having crystal clear terms – Businesses are less prone to unpaid invoice issues if they are upfront in setting expectations with customers.
- Consider short payment terms – It’s as simple as – the shorter the payment term, the sooner you will get paid. Patrick discusses this in the podcast more in detail, specifically on how you can introduce this in a way that is not damaging to any existing relationships.
- Keep the conversation going – When payments become overdue, remember to send reminders. Patrick again covers this point, but looks at some of the statistics around timeframes on debt – essentially that the longer you leave it, the lower the chances are that you’re going to get paid. He has some solid advice around communicating with customers in order to get your deserved payment.
Founded in 2010, and so celebrating its 10 year anniversary this year, CreditorWatch helps over 50,000 companies, of all sizes, perform their due diligence and determine risk to their business. CreditorWatch’s origin sparks from wanting to help small businesses specifically with getting paid, looking after the ‘little guy’ which make up most of Australian businesses.
Listen in to this short 20 minute episode which will educate you on keeping a healthy cash flow, getting clear on payment terms, ensuring you’re paid, minimising your risks and monitoring industry and economical trends that may significantly impact you.