Comments on: Collecting Your Money http://anil.org.in/2007/11/06/collecting-your-money/ Stuff I run across. Tue, 06 Jan 2009 03:44:15 +0000 http://wordpress.org/?v=2.2.2 By: GK http://anil.org.in/2007/11/06/collecting-your-money/#comment-4541 GK Wed, 24 Sep 2008 08:17:11 +0000 http://anil.org.in/2007/11/06/collecting-your-money/#comment-4541 hire me :) hire me :)

]]> By: Jithesh Joseph http://anil.org.in/2007/11/06/collecting-your-money/#comment-2015 Jithesh Joseph Wed, 30 Jan 2008 12:15:31 +0000 http://anil.org.in/2007/11/06/collecting-your-money/#comment-2015 Let the final payment be the lowest!! I am trying to evade this universal phenomenon with the above deceitful action. Still, you will not be the winner always. Let the final payment be the lowest!! I am trying to evade this universal phenomenon with the above deceitful action. Still, you will not be the winner always.

]]> By: Vijayakrishnan http://anil.org.in/2007/11/06/collecting-your-money/#comment-1531 Vijayakrishnan Fri, 16 Nov 2007 19:59:57 +0000 http://anil.org.in/2007/11/06/collecting-your-money/#comment-1531 Really true. This seems to be the culture brought in by traders, whose business runs mostly on borrowed money where payment saved is actually interest saved (albeit for a few days). Since our (Kerala) economy is mostly trading or allied businesses, this cycle will continue - combined with our habit of "delaying" everything. If the client is Govt or its departments, the rule is different. "See" them properly! Make your inroads into the payables section and make your net deep and wide. One thing you can do is to employ a "Receivables" person - either part-time or full-time. This person will be responsible for converting debtors into cash. You can throw in some sweeteners and proper KPIs. Another solution can be a written contract not only outlining your service delivery terms, but also the payment terms. Say, instead of completing the service and issue an invoice for 100%, a PAY-AS-YOU-PROGRESS clause could be built in. Invoice could mention the fact that delay after X days could attract interest(Hardly works in our country!) Yet another one is to plan your cashflow. This is a sureshot. Since you know the paying habits of the customers, you can control the timing of the issue of invoice accordingly - plan your business around it! This seems crazy, but if you think about it, it can be achieved. Or imitate Larry Ellison! Issue your invoice before the delivery of the service! Really true. This seems to be the culture brought in by traders, whose business runs mostly on borrowed money where payment saved is actually interest saved (albeit for a few days).

Since our (Kerala) economy is mostly trading or allied businesses, this cycle will continue - combined with our habit of “delaying” everything.

If the client is Govt or its departments, the rule is different. “See” them properly! Make your inroads into the payables section and make your net deep and wide.

One thing you can do is to employ a “Receivables” person - either part-time or full-time. This person will be responsible for converting debtors into cash. You can throw in some sweeteners and proper KPIs.

Another solution can be a written contract not only outlining your service delivery terms, but also the payment terms. Say, instead of completing the service and issue an invoice for 100%, a PAY-AS-YOU-PROGRESS clause could be built in.

Invoice could mention the fact that delay after X days could attract interest(Hardly works in our country!)

Yet another one is to plan your cashflow. This is a sureshot. Since you know the paying habits of the customers, you can control the timing of the issue of invoice accordingly - plan your business around it! This seems crazy, but if you think about it, it can be achieved.

Or imitate Larry Ellison! Issue your invoice before the delivery of the service!

]]>