Wake up thinking about your payments!

You own or manage a recruitment business?

Lots on your mind and on your ‘to-do’ list, I know.

This might sound dry, but it is critical.

(And the video includes the gorgeous coastline south of Sydney to spice it all up:)

 Are you considering your payment terms as a cost of doing business?

Watch the 90-second video, then read on. (Thanks to my very good friends at APositive on this one). Then fix payment terms in your business if they are holding you back.

• There is a vast difference, with massive implication, between offering seven days terms and 60 days terms.
• Despite this, many agencies are allowing their payment terms to blow out. Very dangerous.
• The impact on cash flow is significant, possibly disastrous
• There is a cost to waiting to get paid.
• Interest sure, but also the opportunity cost!
• Essentially you are acting as a free bank to your client. So many better things you could be doing with your money.
• So, the big tip. Factor this cost into your margin calculation and your pricing!
• Credit should not be free – because borrowing is not.

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Image by mohamed Hassan from Pixabay