Cash is still king – applying, agreeing and collecting.
Whatever the size and profitability of a business, getting paid is essential and everyone in that business should treat cash collection as the single most important priority.
The reasons why businesses do not collect in the cash that is due to them may be legion, but in all likelihood the top reasons will be: ‘didn’t ask for it’; ‘didn’t ask for it in the right way’; ‘didn’t explain why it was due’; ‘didn’t perform’.
Valuing the work that has been carried out accurately and progressively not only means that you will be asking for it close to the time that it has been carried out, it will also mean that people’s recollections of it being done are fresh and the records will be to hand.
Complying with the terms of the contract as to how and when to ask for payment is not only good practice, it also means that the company or individual that has to pay cannot avoid payment due to a technical default.
Valuing changes or simply valuing what has been done is about communicating; explaining to someone who may not, or perhaps chooses not to understand the work that has been carried out, the value of it and why you should be paid for doing it.
Failing to perform everything that is required is a sure fire way to ensure that you won’t be paid, or won’t be paid everything that you want; if ‘complete’ means ‘free of snags & defects’ or ‘with all certificates & manuals’, then clear them, provide them – do what you are required to do and knock over the excuses for non-payment.
Unrealised cash is costly to administer and reduces business profitability – deal with it before it happens. Where is the cash that should be sitting in your bank resting and what do you have to do to collect it?
If you would like advice on how to quickly recover monies outstanding to you C-Link’s Partner, Commercial Risk Management, can provide you with support, just visit their Partner page to get in touch.