Christmas and New Year are slow times for getting paid. There is usually someone around to receive payments but no one around to make them.
Over the holidays, payment delays increase by two to three weeks from the 60 days it normally takes Australian businesses to pay bills.
Many firms have $40,000 or more in overdue debtors, which can increase over the holidays. This can mean significant additional interest costs on overdrafts or bank loans.
If you don’t get paid by 24 December, the odds are you won’t receive payment until at least 18 January, so do your credit control now. This is more important for small businesses than large ones, as many small firms don’t employ credit controllers.
Tightly run businesses find it hard, or unproductive, to contact slow payers, especially if they soon want to sell to them.
Professional debtor managers help you get paid without upsetting customers.
Often customers are unaware outsiders are involved, as good ones act like staff, but without being on the payroll. This gives your firm a truly professional image.
If chasing debts is not your favourite task – especially at Christmas – look to recruit a local, sound outsource credit management company