DON’T SUBSIDISE BIG BUSINESS
Saturday, November 17, 2012 @ 5:24 PM
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Small businesses take the brunt of unpaid invoices. An irony is that worst offenders are the fat cats . In my experience many larger companies are built on unpaid invoices; small businesses financed them. I know it is hard to set the conditions before accepting a new order. The last thing you want is to show ingratitude by questioning willingness or ability to pay. It is harder to suffer the loss when made to chase, wait or be denied payment. Do larger companies keep the utilities waiting? You bet they don’t.
Your business profits should be sufficient for you to absorb the occasional bad debt. You will get those anyway. No one can foresee a good customer running out of funds because his customer has gone tits up. Most of those that abuse your trust are not in that category. They make sure they won’t either by not paying their bills or delaying payment. Think about it: a large company typically has supplier debts of €500,000. If their policy is to cough up every six months their business is based on a €500,000 interest free loan and your business is their bank. That is why they do it.
If a new client is genuine and your service is what they want they will not take umbrage. They will respect you if you politely point out that your advisor or accountant insists on pre-payment for the first three orders. If they object they were no damned good anyway. I am fortunate as, unlike many trades, my clients tend to be appreciative and honest. Not a bad record as I work and then invoice on completion of sections. I can recall only one , D. Healy, who let me down until I re-located to the Costa del Sol. I was there for just seven months and here’s the unhappy record.
- He is a millionaire several times over. He boasted he had made his pile as the best timeshare crook in Spain. He now makes money through a business advising scammed timeshare customers; many unwittingly his. He took me for €80.
- A client boasted that he was one of Britain’s most notorious gangsters and in that respect were telling the truth. He went into hiding when I called for the €100 he owed me.
- A Marbella / Liverpool burial plots business that implored me to tidy up their hapless company stationary. They took me for €75.
- A lady property owner who, limited to a €300 withdrawal from a cash point when payment was due, promised faithfully the €150 balance was as good as in the post. I am still waiting.
- A millionaire whose book I was working on. Nearly completed he owed about €300. He asked me to send the completed MSS, adding he would pay on receipt. That was 12 months ago. I am still waiting.
- A client who presumed that a romantic relationship came with the deal: no thanks.
- A client who offered a deal in return for press releases provided. I soon learnt it was a one-way deal, in their favour.
- Several firm promises none of which came to anything.
Only one business and one private individual paid up-front or on the nail; the latter was an Indian gentleman. Be wise before your hurt, not after it.