Carillion | The Business Debt Epidemic 2018
We need to talk - There’s an elephant in the room and its name is Carillion.
I’m sure you’ve heard of the devastating news that Carillion has gone to the wall and is in the process of taking the hopes & dreams of SMEs all over the country, as well as their associated Pension Funds with them. Other companies, such as Interserve are not far behind.
Let’s be honest - it can happen to anyone - but let’s also be realistic. Who do you have as a client that could be a Carillion waiting to happen?
Think about that for a minute…..
Those companies that are owed money might be lucky to get pennies in the pound following insolvency proceedings. The wise ones minimised their risk when the payments started to slow down and they didn’t extend credit terms and took debt recovery action when things looked precarious. The bigger companies had the luxury of insurance, but most SMEs are trying to meet the salary demands much less have access to insure against debt.
No one wants to risk losing a Client relationship. It’s rough out there and we understand this, but did you know that companies who go under take 16-17% of those they owed money to right along with them?
Take a look at the list of your outstanding debtors today. How many (and how much) are over 60 days? I know they are thought of as trusted clients, but this is business!!
Could you afford to lose this money if their business went under? How would it affect your business? Would you still have a business?
At PRMS we help our clients to get paid. Whether you choose our Ethical Debt Recovery ™
or Business Debt Prevention services to ensure that happens. The outcome is essentially the same.
Think about it. How much has slow or late payment cost you so far? Don’t be embarrassed, it goes no further than the two of us.
If this resonates with you then you have choices and we can help you in the following ways:-
2. If you would rather learn how to avoid your company being a victim of unpaid invoices then our Debt Prevention Training will work well for you, helping both you & your colleagues to be trained in how to identify the areas where you may be exposed to business debt and to plug those gaps and empower your staff.
Your business is not a Bank. And by allowing customers to take unauthorised extended credit from you, you are, in effect, acting as a free cashflow source to them.
Your money would be much better off in your own account. Or dare I say it, even invested in bitcoins!! [Disclaimer: We are not advising that you invest in any Cryptocurrency or any other type of investment without due diligence & financial advice].
Whatever you do, do something about it today.
Clayton M Coke | Founder & Managing Director