Payment jams may affect every entrepreneur, especially now, when economic slowdown in the economy is noticeable and there are more and more companies registered in the KRD. In order to maintain financial liquidity, it is currently necessary to be especially sensitive to any signals coming from the companies cooperating with our enterprise that may suggest their problems. The quickness of response in the context of recovery of receivables is a key element here.
Who is your partner? Without the answer to this question, it is better not to commence new cooperation. We know that in worse times the companies try to acquire a new contract at any price but if it means a threat of the declaration of bankruptcy, probably the game is not worth the candle. Therefore, before we start to be engaged with a new customer, let us check it at least in a basic way, i.e. let us look what their financial and legal situation looks like. What will be useful here will be such institutions as the National Court Register and the KRD as well as simply the Internet, where we may find various helpful information – if for example the company has recently won a tender, it means that it has not public law debt and if its debt is found on debt exchanges, it should make us alert. It is also worth enquiring in the industry, among the former and the current customers – other entrepreneurs are eager to share their opinions, both the positive and the negative ones.
If we decide to sign the agreement, it is worth remembering to determine some rules. If the new business partner insists on long payment terms, we should consider it before we agree thereto without hesitation. Remember that in this way you provide your partner with a credit from your own means – can you really afford it? It is worth analysing your financial situation and think how long you can wait for payment of the invoice, what payment term is acceptable for you – what is advisable is a pragmatic approach. Maybe, especially at the beginning of cooperation, it is not worth risking and believing excessively in good will of the business partner? Suspicion is valued nowadays.
In the starting period, it is good to determine some style of cooperation – if we start to watch the payments of the new partner, put special attention thereto, they will be aware of the fact that we will not hesitate to ask for the payment if they want to defer it. Let us not forget about our current business partners – the fact that the cooperation has been running well so far does not mean that it will always be like that. Prosperous companies may also get in trouble, especially now, so we should be careful about any deviations from the standard. If a loyal customer defers the payment for several days and it has not happened before, we receive a signal that cannot be ignored. It may be an ordinary accident but it is better to check it and to react than regret later not having taken any action on time. It is better to be safe than sorry.
Published on: 9 November 2016