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Service: Credit Management
 
Date: 18/12/2012
 
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A New Year, a New You!


dont know Soon the drunken slur of Auld Lang Syne will be filling the room and itíll be time to start thinking up your new years resolutions. ICSM suggest that if you make just one this year, it should be to keep a very close eye on your cashflow.

 

It is the lifeblood of your business. Once defaults begin and late payments are inevitably followed by non-payments you need to ensure you have the correct procedures in place to ensure survival.

 

This year printers that didnít lost a total of £6.5m.

 

Those that did take definite action but required additional support turned to ICSM and we helped them re-coup a total of £15m.

 

But crucial to our success and in turn the safeguarding of our members was timely action. This was made possible by carefully adhering to clearly established procedures.

 

Having recognised and effective stages in place enables operations to document issues as they escalate to create a strong and irrefutable case.

 

Creating such a strong credit control backbone was never more important. The recession has been so long and deep that recovery throughout 2013 will continue at a slow pace requiring businesses to be ever more vigilant of slipping payment schedules.

 

Our industry has one of the worst credit control histories of all, with terms often being as long as 120 days. That, mixed with ineffective claims, creates a troubling combination.

 

The recession has also prompted many printers to diversify and expand into areas including cross media and marketing in search of new revenue streams. However, this means a move away from traditional print and the usual customer base to a sector and business practices that are not so well known.

 

Companies may also be more stretched because of their broader reach so customer contact, crucial in keeping abreast of changes, may slip. Credit checking is vital to identify any potential causes for concern.

 

There will be no quick return to the halcyon days of print particularly as the recession has driven down costs and encouraged customers to look at alternative methods of getting their message across. Printers need to adapt their offering while at the same time ensuring their customers can and will pay their invoices.

 

So please make 2013 the Year of Cashflow Checking and ensure it is one resolution that doesnít get broken.

 

If you have any questions or comments regarding the above article the please contact us on the details below.

 

Ian Carrotte

Owner- ICSM Credit

 

ian.carrotte@icsmcredit.com

0844 854 1850



Tel 0844 854 1850 ___ Fax 01454 318 517 ___ Address ICSM, 51 Broad Street, Chipping Sodbury, Bristol, BS37 6AD
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