You do the maths!

I expect you thought the days of ruling with a big stick were gone? Surely we are now living in a free loving business world where we all consider each others success and profitability? After all, common sense dictates that if our suppliers and customers thrive, then so do we….right?

Sorry, time to wake up, the alarm clock has just gone off.

Time to face the School Bully! Yes our good friend, the bully, he’s now holding the purse strings for Bigcorp. It’s OK though, their cash flow is fantastic. You diligently checked them out for credit, whoa, what a rating!  A number bigger than the value of houses in a small town. Sound as a proverbial pound!

What’s that? They will pay you in 60 days….. Sharp intake of breath, but it’s a good contact, you’ve tendered long & hard for this. Settlement discount for payment within 7 days…GREAT…. no hang on, that percent would be all your margin! OK, let’s cope with 60 days to secure the deal and get that illusive turnover.

Hey, now who said anything about 60 days from the end of the month? What do you mean we’ve now missed the payment run for the next 4 weeks? ……..

In just a little longer than it takes them to drink their cafetiere of morning coffee, MP’s could draft a bill forcing big corporations to make full payment to SME’s within 7 days or, heaven forbid, on delivery! How fast could our valiant wheels of SME industry spin then? The possibilities for growth of the UK would be endless.

Just a thought!