“30 per cent of payments to small firms are late, and 38 per cent have experienced cash flow difficulties as a result. Addressing this issue could unlock around £2.5 billion, FSB estimates, and keep an additional 50,000 businesses open” - FSB July 2017
The real problem is that we don't accept responsibility for getting paid on time. Articles like this from the FSB can almost encourage an unhelpful belief "That's just the way it is and there is not much I can do about it myself".
There is something we can all do.
Late payment is a choice. Your choice.
Avoid the temptation to put off the uncomfortable discussion about money until the end. If we are going to have a problem, let's find out earlier rather than later.
It might sound something like this...
Step 1. Get permission
"Before we talk any more business, can I let you know about our payment policy? If it's unacceptable to you, that's fine. Let me know and we needn't start the business conversation".
Step 2. Give a clear explanation of your policy
For example, "We require payment in full before we deliver products or services. Is that going to be a problem?"
Try it
You'll be surprised at how many people will be happy to co-operate. If they don't, at least you will have a realistic expectation about the outcome and can make an informed decision about whether you want to do business.
Stop blaming the customer/economy/market and accept personal responsibility.
Sandler Rule: Inspect what you expect!
Are you communicating effectively in your sales interactions? If not, call me on 0121 222 5590 or come along to my next Business Leaders Masterclass.
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