In small and medium Australian businesses, getting paid on time is getting a whole lot tougher…
There are a variety of reasons. Sometimes the power relationship with big customers is unbalanced. Often in smaller businesses our customers aren’t just distant “customers” – they’re friends as well.
Add to this the ongoing business and supply chain disruptions of the third decade of the 21st century, and the challenges of getting paid on time just get bigger and bigger.
“How to get paid on time” ISN’T a subject taught in schools – however there ARE processes you can put in place to get the cash flowing into your business more smoothly.
“We put in with a practical, automated Dunning Process – which included Receivables Management Finance for invoices over $10K.
– Flooring Contractor
So how DO you get paid without getting pushy?
The first part of the solution is to put in a practical, structured Dunning Process. It’s a process that combines business procedures and email automations into a process that improves the speed at which you get paid.
A professional Dunning Process will minimise the potential for slow-paying customers to ignore your invoices.
I’ve documented the key components for building an effective SME Dunning Process in this FREE ebook. It’s a process that helps my customers get paid faster.
It’s a complete guide that includes email copy PLUS straightforward automation suggestions.
Why is your Dunning Process critically important – and what should it include?
“Dunning” is an old-fashioned word – because the process has been around for a LONG time. Businesses have had to “dun” their customers to get their bills paid for centuries.
Today, 30/60/90 day credit terms make cash flow slower and peakier than ever before – you’re essentially giving your customers an interest-free loan for a month or more just to buy from you.
The constantly shifting economic environment – with challenges from interest rates to taxation changes plus increasing compliance requirements – is stressing a lot of businesses. The result is increasing late payment rates – which is why a robust Dunning Process is so important.
Here are some key things that SME operators need to know about the Dunning Process in order to keep the cash flowing into their business:
What exactly does my straightforward Dunning Process Guide include?
I’ve been helping Australian businesses improve their cash flow for many years. Over that time, I’ve learned what SMEs actually need – which is a bit different to a lot of “everybody knows” approaches. The guide that I’ve put together includes:
If you’re tired of giving your customers interest-free loans to fund their business, then it’s time to explore what a professional Dunning Process can do for your cash flow.
An effective Dunning Process can get the cash flowing INTO your business more smoothly – and usually with a lot less effort…
Hi, I’m Martin Cattach – a Working Capital Strategist with decades of experience helping Australian businesses prosper.
The 2020s have thrown disruption after disruption at Australian SMEs. We’ve been through plague and conflict, with ongoing government changes in regulation and overheads on top of external forces.
This means that the need to actively manage your business cash flow – and in particular to minimise your outstanding debtors – is more urgent in this decade than it has been since the start of the 21st century.
Making sure you’re collections process is best practice can make a big difference to your results. However, this uncomfortable side of cash flow management is not always a focus of business efficiency.
It’s a foundation skill in building the Working Capital resources you need to build your business. But it IS just a single step.
If you need a broader, strategic approach to your business cash flow – not just a procedural improvement – then let’s talk.
TALK TO A WORKING
CAPITAL STRATEGIST
