Postal strikes can seriously affect your cash flow. There have been several reported cases of businesses going bust due solely to postal strikes.
Postal strikes will impede your cash flow for 2 reasons:
- Delays in customers receiving your invoices &
- Providing your customers with an excuse not to pay you on time (cheque lost in the post etc)
Firstly, we would suggest that you always e-mail your invoices to your customers. Not only does this save you time and effort, it also saves you money. Did you know that the true cost of sending an invoice by post to your customers is actually around £1.00? The cost of e-mailing invoices is virtually zero?
If you haven't done so already why not encourage all of your customers to pay you by BACS? The benefits of receiving payment by BACS are:
- Postal strikes will not affect your cash flow.
- Your bank charges will reduce (many banks will not charge you to receive payment by BACS)
- Unlike cheques, BACS payments rarely go astray.
- You do not have to make trips to the bank to pay in cheques.
We could go on, but I think you get the picture.
Cheques are on their way out. Many retail outlets no longer accept cheques as a method of payment. If large retail outlets can refuse cheques why shouldn’t you? We would suggest that when you sign up a new customer you tell them how you wish to be paid rather than leaving it up to them to choose how to pay you. It works believe me it does. If you are to stand a good chance of being paid on time, it is important that you keep control of how you are paid. Credit Control is predominantly about control, choice, procedure and believe it or not psychology!
If the current postal strike (October 2007) is affecting you why not arrange to pick up cheques from your customers yourself, or failing that arrange for a courier to collect them for you? This opportunity will also allow you to touch base with your customers and possibly present you with a sales opportunity as well!
For further information about how we can help you please visit our website
Jamie O "Making Your Cash Flow"
