Subscriber Login

MDM Premium Content  What's this?
Subscribe today to access MDM's premium content with two issues a month of timely and to-the-point content for the busy wholesale distribution executive. Here's what you get:
  • Analysis of distribution trends
  • Interviews with industry leaders
  • Quarterly Public Distributor Report
  • Quarterly Inflation by Commodity Group Report
  • Market and economic data analysis
  • Access to the best online research tool in distribution

And much more! Learn more

Forgot Your Password?
Jenel Stelton-Holtmeier

Cash Remains King in Tight Credit Environment

By    Jenel  Stelton-Holtmeier 
December 1, 2009
More about:  MDM Blog Operations
Go back to basics to improve cash flow: Better manage A/R.
Text Size
Email Print ShareShare/Bookmark
The outlook for credit availability for small businesses is looking even bleaker after stimulus provisions tied to loans from the Small Business Administration ran out of funding last week, according to a recent article on WSJ.com.

With that in mind, finding ways to improve cash flow may have just become more important. Faced with a tight credit situation, cash is king.

In his recent 2010 Economic Forecast for Wholesale Distribution Webcast, Adam Fein said that the distributors who have "the skill, the will and the till" will survive and thrive in the next year. Though he includes access to credit as part of the "till," cash is also key.

A big part of improving cash flow can be tied to improving customer payment cycles. While everyone is probably looking for the magic bullet for getting customers to pay on time or early, Sarah Lawer, a Seattle-area lawyer who maintains the blog The Company Line (thecompanyline.wordpress.com) offers a few straightforward tips on how to improve customer payment:

  • Quicker turnaround in providing an invoice on products: "Getting paid starts with the invoice."
  • "Keep your invoices clean" - most invoices don't require extra information; keep them clean and straightforward
  • "Beat the payment deadline of your customers" - customers may not be operating on the same payment cycle that you do. Knowing their payment cycles can help you get the bill to them before the cycle closes rather than the day after, improving your chances of being included in the current round.
  • Follow-up - don't be afraid to contact your customers if they're late on paying the invoice; they may be holding off until they feel they're at the "have-to-pay-now" point.
Print Email ShareShare/Bookmark
Use the form below to leave a comment
captcha

Please enter the text you see above:

Not sure? Give me another.
  • MDM Podcast

Think About It:
'I Don't Know':
A Great Answer

Finding yourself frequently acknowledging, I don't know, is a signal that you have become a superior sales rep.

Listen now.

Learn more or subscribe to the Think About It podcast.

  • From Adam J. Fein, Ph.D.

Benchmark with Wholesale Distribution Economic Reports

Click on the video below to hear how to use this data for better business planning.

adam-video

  • MDM Store

The Answer Book for
Growth-Minded CFOs and
Controllers

answer book for CFOs and Controllers

Now Available: An ultra practical idea-guide that gives an inside look at how leading companies are dealing with some of today's toughest financial and business management challenges. Go to the MDM Store.

Title Company Location
Midwestern Field Sales Territory Manager DeVilling & Associates Midwest, US
Senior Account Manager and National Account Manager Precision Dallas, TX
VP Sales & Marketing Confidential Southeastern, PA
Branch Manager Graybar Electric Company Garden City, NY
International Sales Manager Industrial Lubricants Manufacturer United States
National Sales Manager Steiner Industries United States
View ALL Wholesale Distribution Job Listings Post Your Job Listing


MDM Calendar

Technology Case Study

October 7, 2010

2011 Economic Forecast

November 18, 2010

Featured Products

answer book for CFOs and Controllers

Benchmarks & Best Practices: The Answer Book for Growth-Minded CFOs & Controllers

Reviews (0)
 
Price: $249.00
An ultra practical idea-guide that gives an inside look at how leading companies are dealing with some of today's toughest financial and business management challenges.
HR Strategic Answer Book

The HR Professional's Strategic Answer Book

Reviews (0)
 
Price: $249.00
This book takes the questions HR professionals were asking and provides real-world answers gathered from the best thinkers in the business, including working professionals, consultants and legal experts.
industrial-single

2010 Wholesale Distribution Economic Reports: Industrial Distributors - Single-User License

Reviews (0)
 
Price: $119.00

This report includes: Revenue and employment growth trends, the number and size distribution of companies, gross margin, wages, other operating statistics and expert commentary to help you interpret the sector data in light of current macroeconomic trends