Date: 18th September 2014
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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