Melanie Hird
[email protected]
07917 888 880
Melanie Hird is responsible for the origination and
execution of deals in the Yorkshire market, specialising in
restructuring and turnaround.
3
Ensure that your sales team and credit department are
joined up. I have heard of over enthusiastic sales people
agreeing to unrealistic payment terms in order to clinch a
deal. It is vital to communicate the impact of such terms on
the overall business.
6
Consider the effect on your business of a new contract
win that involves significant upfront investment in new
machinery, technology or staff. Can you afford a sizeable outlay
if your new customer refuses to meet your payment terms?
4
Spread the risk. Having all your eggs in one basket with
one major customer makes a business very vulnerable
if that business pays late. You might be better off with a
number of smaller customers who pay within your terms.
7
Are you prepared to make a tough decision? Ultimately
you may decide to go along with late payments from a
major client and rearrange your finances accordingly. On
the other hand maybe it is better to end your relationship
with a company whose delays in paying you are jeopardising
everything you have worked so hard for.
5
Undertake due diligence on new customers. In the
excitement of winning a contract you may overlook the
need to drill down into that company’s payment ethos. This
is particularly true if you are entering new markets as paying
late can be the cultural norm in some countries.
The stability of an entire supply chain can be threatened by
just one company failing to pay on time so I urge any SME
business owner to seek advice if unpaid invoices are keeping
them awake at night.
As director of Seneca Investments, Melanie sources and
executes deals involving small and medium sized businesses
– managing an investment portfolio and investor relations
together with driving the strategy for the businesses.
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