Financials

How Good is Your Credit Control? (OR “Do Your Customers Use You as an Unpaid Banker?”)

In spite of the rise of online sales, the majority of business-to-business transactions are still carried out on credit: goods or services are delivered, an invoice is raised, and payment is made some time afterward. Credit is necessary in any developed economy in order to stimulate growth: using credit as a substitute for cash is essential because very few businesses have sufficient cash to pay “on delivery”. It allows people to acquire goods and services without having to save [...]

THE IMPORTANCE OF KNOWING YOUR NUMBERS (AND ACTING ON THEM!)

I read two articles today which, on the face of it, were totally unrelated. On reflection however it occurred to me that, in fact, they were simply different sides of the same coin. The first, which appeared on the “Construction Enquirer” website, outlined the dangers facing contractors in the construction industry, caused by a massive, and rapid expansion in activity. It referred to a “tidal wave of work”, which the industry is likely to have difficulty dealing with because [...]