As we all know cashflow is vital for the survival of any business regardless of size or turnover. Leeds companies and freelancers are being held ransom due to their clients lack of belief in paying on time.
As stated in a previous post ‘Promote Your Values & Win New Business‘ we at B2B LEEDS believe it is important to promote your commitment to the values you believe in and if paying on time is one of them then do so and shout it from the rooftops. Paying on time should be a key principle of one’s business. If you build a reputation of paying on time you will be promoting your company with best practice.
Some will say you need the latest accounting sofware in the cloud or an automated monthly subscription system. All you really need to pay on time is the money to do so and the date when to pay the money. If you value ‘paying on time’ and build your business around this then you are in a very positive position to win new business because everyone hates a late payer!
Your potential customers know how much it hurts when companies don’t pay on time, so when they see one of your key values is paying on time that will instantly separate you from other companies trying to get their business.
To achieve this it may involve partial percentage payment upfront on any new orders or pre-payment. Post COVID-19 we have to look at how we do business going forward. Pre-payment is the best option and if your product or service offering is very good then ask for payment in advance.
The impact late payments is having on Leeds City Region businesses:
- slowing down planned investments
- inability to pay salaries
- reduced innovation spend
- inability to pay their own invoices (this is the main impact)
Consider asking for pre-payment or at the very least a percentage payment upfront.
Evaluate your values surrounding invoice payment and promote it as you would:
- environmental values
- diversity values
- mental wellbeing values
Leeds businesses have an opportunity to secure not only their individual survival but the survival of their trading partners.
If you plan to buy a product or service for your business in the next 12 months please complete the form below.