Take steps to ensure you get paid, SMBs urged

Friday 11 January 2013

Business meeting

Small and medium-sized businesses (SMBs) should take more responsibility for their own actions in getting paid, a leading industry expert has claimed.

James Caan, the serial entrepreneur, said SMBs can take steps to remove the barriers to payment which often stand in their way - and leave them out of pocket.

"The basics are, of course, to invoice on time, promptly and accurately," he wrote in a blog posting for the Institute of Credit Management.

"They are also to ensure that your quote has been accepted, the product or service delivered, and the terms and conditions of payment agreed in advance."

Mr Caan claimed that if SMBs do nothing else but stick to these simple rules, then their business will not only survive, but it will have every prospect of growing.

This means the enterprise can contribute to the sustainable economic recovery so badly needed in the UK, he stated.

The recruitment expert said SMBs should also consider alternative funding mechanisms in order to keep the cash flowing.

"The government is keen on encouraging the banks to lend but alternative funding mechanisms such as factoring and invoice discounting rarely deserve the negative publicity they are inclined to attract," he stated.

Mr Caan claimed that supply chain finance, which the government encouraged companies to consider last year, also has a place.

Posted by Steve Williams