Debt management: lessons from an 11 year old

Date: 18th September 2014

 

past due

We’ve recently talked about how important it is to manage debt and terms of trade to ensure consistent cash-flow and longevity of your business. To streamline that process, there are some cool new tools out there.

Debtograph, a free Xero-integrated add-on, is one of our favourites. As well as offering a nifty app that shows your debtors in a ‘fun and friendly way’, they have some great advice on how to handle those people who are slow at paying their bills.  Here is a snippet from a recent blog, Lessons from an 11 year old.

You want some new ideas on how to collect debts? Simply deprive an eleven-year-old of their pocket money and watch how they react.

 

What an 11 year old says: Translation for business:
That’s not fair! You promised! On-time payment is an implicit contract, a principle that should be observed by any business with a moral compass
You gave my sister her money I am aware that you are paying other suppliers so there is no reason to withhold my payment
I won’t be able to go to the cinema with my friends Your actions have bigger consequences than you may realise, so it’s not just about the money
I tidied my room and everything… My side of the arrangement has been fulfilled perfectly
… well I won’t tidy it this week I shan’t be able to guarantee service until this debt is cleared

 

 



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