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MAY 2012 | HIRE
AND
RENTAL
NEWS
| 17
INDUSTRY IN FOCUS
is due. You are not asking for payment
when you call, you are ensuring they
have received the invoice, the details are
correct and they are aware of the due
date. Too many businesses start chasing
unpaid invoices after the due date.
• Have ‘collection targets’ for each month
and by customer to match expected
projected cash flow. Chase the largest
amounts first, with the smaller and
further out amounts last. A collection
target will ensure you manage monthly
cash flow more effectively.
• Dispute resolution is the key where there
is non-payment due to a dispute. There
are suitable techniques we can provide to
help should this occur.
Resolving issues can be complex or, easy.
The more you follow these tips the fewer
disputes you will have when payment is
due.
• If you carry inventory, don’t overinvest by
carrying too much. How much cover stock
do you need or, carry? Is it too much?
How did you calculate it? Do you carry
safety stock? How much? Can it be less?
Are your suppliers nearby, interstate or
overseas?
These factors will determine the right
amount of stock to carry and the amount
you should invest.
• Do you have
slow moving or
obsolete stock?
Where possible
get rid of it by
selling to third
parties or, on the
internet. This
is cash you can
use to run your
business.
• Don’t be afraid
to seek advice.
About
bpworkingcapItal
bpworkingcapital
can help members
improve and
manage working
capital and cash
flow requirements
on a sustainable
basis using a
combination
of education
services and products (InvoiceSelect and
EquipmentSelect).
InvoiceSelect is an invoice finance product
that provides members with the option to
sell outstanding invoices to raise short term
cash. EquipmentSelect is an equipment
finance solution to finance vehicles, plant
and equipment and tools for business.
For more contact 0412 475 931 or visit:
www.bpworkingcapital.com
HR