Why Suppliers Need To Start Acting Like "Lenders" in 2021 and Beyond...
If you are a B2B supplier and you give your customers trading terms you need to start viewing yourself as a lender or you will be in DEEP water.
Small and medium-sized businesses are waking up to the idea that they are more than just a supplier of goods…
They are also credit providers.
In Australia alone, there are tens of thousands of SME businesses, like yourself, who lend out $1.3 trillion worth of goods to businesses every year with ZERO expertise in running a credit business.
Although you are not lending cash like a bank, YOU ARE lending out your goods on 14, 30 and 60-day terms.
Essentially, you are giving out an unsecured loan every time a customer orders from you.
And instead of having the right processes in place like a bank (who has guaranteed methods for payment) you are left crossing your fingers hoping to get paid.
Just like you have experienced multiple times yourself, getting paid on time just doesn’t happen as often as you’d like.
Sometimes, you don’t get paid at all…
On average, 83% of supplier businesses fail in the first 5 years due to late payments.
So if your customers aren’t paying your invoices on time, the future of your business isn’t looking too bright…
Although this is a scary statistic, this doesn’t have to affect you.
You just have to simply change the way you trade with your customers.
That’s why we have created the Trading Checklist.
The Trading Checklist is a simple guide that helps suppliers transform their business.
From a high-risk, unsecured “lender”…
To a payment-collecting powerhouse!
You see, over the last 2 years, we have worked with hundreds of suppliers in almost every sector you can imagine.
In this time we have identified the exact process that suppliers should implement to become professional lenders and get paid on time, everytime.
This checklist works for EVERY type of supplier.
If you provide goods on credit, this checklist will change the way you trade FOREVER.
For example, a local brewery in Melbourne was struggling to get their on-premises customers to pay their invoices on time.
They continuously saw their invoices become overdue on a regular basis.
This was killing their cash flow and hours of their time was spent chasing invoices.
However, when they implemented our process, their business changed in a matter of a few weeks!
They saw a MASSIVE reduction in their receivables.
They went from having $650K in overdue invoices to $150K in only a few months!
Not only were they finally receiving the money they deserved, but the business itself had less stress and more time to focus on the tasks that matter.
No more chasing payments, no more awkward phone calls asking for money.
No more stress about wondering when payment was coming in.
Just money in the bank from their customers, every fortnight like clockwork.
Want to act like a credit provider? Download Now!
Transform your business from being a high-risk, unsecured “lender of goods” to a payment-collecting powerhouse!
About the Author
Having a birds-eye view of trade credit gives me some interesting insights. Over the past 3 years or so, we have seen growth, decline, repeat; over and over again. B2B suppliers used to rely on traditional credit reporting agencies to predict the future and tell them who to trade with. Unfortunately for them, the pandemic has thrown a monkey wrench into the spokes of traditional credit reporting and historical information means very little. So now, the best form of defense is prevention, because the cure comes too late. I authored this checklist to help the trade-credit novice get up to speed with who to give credit to, how much and for how long.
Tim Demetriou - CEO of PencilPay
“We no longer have to charge clients for payment manually.
We are also able to pinpoint our “trouble clients”, as we are notified of their inability to pay via email in real-time.
This helps us work with these clients and eliminate potential bad debts that might occur.”
CEO of The Bean Cartel