Networking Now

I'm currently putting together an article for a credit industry magazine and am looking for some input.....

The article is around excuses for non-payment. Usually these articles are penned using examples from credit managers and debt collectors which is fine, I'd like to look at it from a different perspective, from the normal business person;

What excuses do you hear all the time?
What is the best excuses you have ever heard?
What excuses have you used in the past (before you became a stand up business person that always pays on time :D )

One that always sticks in my mind:

We had been after payment for around 3 weeks when all of a sudden we had a call from the wife (only after a threat of further action was delivered) of the owner. Apparently he had been in hospital for the past month after falling off his horse and breaking both arms! She explained that he really wanted to pay but he was unable to sign any cheques as his arms were stretched outwards

FYI: We received payment three days later after we explained that he would still be able to authorise payment via bank transfer over the phone

I worked in Accounts Payable for what was once a very large Manufacturing Company in the UK.

We refused to pay any of our suppliers in the month of December, because powers that be expected the companies bank balance to look as healthy as possible at their year end.

You can imagine the abuse I received during this period, but unlike most I prefered to go for the truthful aproach and tell them exactly why we were not paying them.

Not much use to them, I know.

On the other side Accounts Recievable I do know that they also had excuses like " we were unable to pay due to the director being in hospital " or " we can't pay you until we get paid ".

Mine isn't an excuse for non payment, it was the reason given for Account's payable not being able to take my call. Oh, sorry can't put you through, it's POETS day, obviously not having heard this before I asked what it was. "Pi*s off early, tomorrow's Saturday" was the response!

As someone who does a fair bit of credit control for Client's one thing I would like to share is this. If you are having trouble paying your bills be honest. Explain to the supplier that you haven't got the cash right now and tell them when you can pay them. They will appreciate your honesty. It's much better than coming up with lame excuse after lame excuse!

I used to work for two great directors but my god did they penny pinch.

I was putting calls off at their request for some of the smallest amounts; in one case as low as £20. The excuses given where rather lame so the contact at the other end of the phone clearly new I was fobbing them off on the director’s behalf.

My problem is I am a very honest person and with the two directors in the same office space as me; just divisional walls, I must admit I felt very uncomfortable with the situations this put me in as a lot of the companies calling; I had built very strong business relationships with to enable best business potential for the companies future and the fact that a lot of the suppliers to the company also happened to be valuable customers made the situation unbearable, I was made redundant a few months later any how so best for me really.

I absolutely agree with Helen, honesty is the best route to a great business relationship.

If you can not be honest about your finances how many other white lies are you pulling with your customers and are they actually getting the good service / product you promote?

After a dishonest finance response I would (as a customer) question this, and once a customer begins questioning your methods it will not be long before they begin to look else where. It could even begin to put the thoughts into the suppliers mind about the financial stability of the company, especially with the current climate.

Small concurs fall from big tree's

Yes, I guess I stayed out of this discussion as more the Missusses side of the fence, but you just reminded me of a Director I worked for years ago, My father ( I am sad to say and his two partners), they all phone dodged for one reason or another, but the MD was the one that ducked anything financial, wheher money owed or refunds, as I was running a national department, my relationship with these people was key.

But looking back, if it were not for the mistakes I witnessed others causing, I may not be the kind of business person I am today!

Every cloud . . . (Helen taught me about the 3 dots!)