When you hear the word “collections” it conjures up images of nasty warning letters, harassing phone calls, Repo Man and maybe a scene out of Goodfellas. Those types of collection methods, legal or not, might be part of the collections process at companies that sell products. However, there is an entirely different dynamic when it comes to collecting payments for businesses that sell services ( i.e. SaaS services, streaming movies, mobile services etc.).
I can’t be the only one who cringes whenever a poorly made voice-over commercial, complete with the occasional bullhorn sound effects, shouts at you to come in today to check out the best product around town. I feel the same sentiment whenever a mistake ridden blog post or article on a shady looking website attempts to convince me that Company XYZ is the best in their field. Don’t get me wrong, article marketing and social media outlets are great ways to get a company’s name out there. But when done in a tasteless manner, it can turn people off rather than draw them in.
In my two and half years on the Sales Team at The Receivables Exchange, I have witnessed firsthand the ever changing state of business and the surrounding economy. However, when speaking with companies in need of receivables finance, one theme remains constant. More than ever, invoices are taking longer and longer to pay, causing a strain on cash flow needed to efficiently operate their business. What was paid in 15 days is now taking 45-60 days. In some extreme cases, net terms are being extended as far out as 90 days. This is especially common when invoicing large, multinational corporations. If you want to play ball with the big boys then you have to play by their rules.
Small business bank lending continues to be a hot topic in the news. Last week Thomson/Reuters and PayNet, a research firm that tracks loans to small businesses, reported that lending was up for the month of June. It’s the first time since 2009 that there has been an increase in lending to small businesses.
As a small business owner, how much control do you have over your business? Sure, you can control who you employ. You can control from whom you buy just about anything from raw materials to the paper towels in the bathroom. You can control who you will or will not do business with, and you can control the messages the public sees and hears about your company. But….