If you now turn payment terms on its head, you’ll see how it reflects on your supply side - you’ve probably paid your suppliers a little after terms at some point. This is a common situation. It may not mean anything at all.
But perhaps it happens often:
What is this doing to your cashflow?
What opportunities are you losing out on by holding up cashflow? Eg. discounts, better terms, deposit on a new product line
What are the flow-on effects to other parts of your business? Eg. Relationships, reputation, loss of more skilled employees
Cashflow problems may make it difficult to pay employees
in time. It becomes a case of priorities, and perhaps as you keep chalking up
more debt, you’ve had to push employee wages down a notch.
It becomes a vicious cycle. And a risky one: employees can get Fair Work Australia involved. Orders to pay, and even court may become a reality.
Even worse is the risk of losing the trust, motivation, and loyalty of your best employees.
What we’ll do is:
- Help you improve and set up systems that work together
- Offer ways to quickly deal with missed employee payments
- Understand you and your business: past, present, and future goals, activities, and financials
- Focus on maintaining positive relationships and goodwill
- Respect your place in the driver’s seat: we guide, you decide