Cash-Flow challenges:
Turnover is steady if not increasing. But cash-flow is beginning to stress the business owner.
Main Reason: The business and the owner got away with very poor money management disciplines for a long time. Poor paying habits of the customers became very bad and are becoming the norm. The business is held hostage.
Next Step: The business owner is now forced to come out of his comfort zone to take drastic action. Following are being considered: Factoring/Invoice discounting/Sales ledger outsourcing. A direct debit collection scheme has also been suggested.
Lesson for any business owner: Train your customer from start to follow your credit control system. Be firm but fair.
+ Ravi Peal-Shankar
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