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The need to stimulate cash flow NOW!

To try and stimulate some cash flow moving again in the B2B arena, customers and suppliers need to engage with each other in a constructive manner.

How companies treat and approach their client base today will determine the longevity of those relationships and P&L of their company. Businesses need to ensure they are a primary creditor to their client and that they are respected. We are not suggesting being ‘too soft’ or being overly sympathetic but would suggest that suppliers don’t just accept the first answer to a request for payment (“We are not paying…”, “We cannot pay….” “as to why they cannot......”). Rather you should try to be empathetic and probe further as to they cannot or will not pay your invoices.

We need to understand what their reasons are. Even if they say “cash flow”, ask further open questions (“What?”, “When?”, “Why?”, “How?”) to obtain a fuller understanding of their situation. You might then be able to pass on some tips which they can use to secure payment from their customers.

Remind them of the mutual benefits of paying your invoice:

1. We can then pay our supplier
2. When this is all over, we will both be glad we survived because we acted in this manner
3. Paying promptly earns your business respect
4. It may allow you to negotiate better deals or agree a prompt payment discount
5. It makes your suppliers stronger and more reliable and you will need them in the future
6. Ensures the supply chain continues
7. Improves your trading relationship
8. Makes you a more valued customer, which won’t be forgotten when this is all over

COMMUNICATION CONVERSATION COMMITMENT

At Pecunia we are offering free 1 hour consultations to anyone in business that needs assistance in their cash flow and more importantly getting paid so you can pay your suppliers.

PLEASE do follow our link below and ask us for help and assistance, and either contact us through our contact page on the website or via email on info@pecuni2016.co.uk


www.pecunia2016.co.uk/latest/help-and-assistance-for-businesses-during-covid-19-for-all-businesses/

By Tracey Westell from Pecunia, 1 year ago.

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