Category Archives: Bad debts

31 Day Cash Flow Challenge Day #4 – Reduce non-core-expenditure

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Reduce non-core-expenditure

Reduce non-core-expenditure

This is a great way to increase your cash flow but you need to know the difference between core and non-core-expenditure. Basically core is the essential day to day expenses like utilities, rent and wages. Non-core is the expenses unrelated to running the business every day like insurance, travel, and tea and coffee.  Also  referred to as direct and in-direct costs.

Although insurance is non-core it is still essential so you need to aim to reduce these expenses but you can’t necessarily cut them out entirely!

Follow the 31 day Cash Flow Challenge here and on Facebook

Mobile phone numbers connect you to customers like never before

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A recent survey conducted by direct debit company Ezypay showed that the majority (86%) of respondents had changed their mobile phone number once or never. In fact 50% of respondents had never changed their mobile phone number, and the greatest number of times a mobile phone number had been changed was twice.

Compare this to how many times you have changed your address and you will see that mobile phone numbers are more likely than addresses to be accurate in your database.
Mobile phone numbers should be a mandatory field in your databases if they aren’t already.

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SMS gets greater cut through than emails

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Direct debit company Ezypay believes that SMS gets greater cut through in customer communication than emails.  Why?  Simply because we get less of them!

A recent survey we conducted showed that the majority of the respondents receive lower than 6 SMS each day.  How many emails do you receive?  Here’s betting that it’s a lot more than 6. 

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The difference between DIRECT CREDIT and DIRECT DEBIT

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If you are wondering what the difference is between direct debit and direct debit here is a quick overview.  In summary if you have a high value product I would recommend direct credit but if you have a high value service then I would recommend direct debit.

DIRECT CREDIT = like a loan, the customer applies for a loan from the finance provider and if approved the finance provider gives the business the money for the product.  The customer then pays the finance company back and keeps the product. 

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Get your debts paid more quickly

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Dun & Bradstreet recently ran an article with tips on how SMEs can get their debts paid more quickly.  Here are their tips…

  • Make a collection plan
  • Be diplomatic
  • Don’t make empty threats
  • Be flexible
  • Know when to get help
  • Check references

    • All good points but they forgot to say ask your debtor to go on a direct debit payment plan.  This way you have more control over the payment.  Some of our clients put any late payers on direct debit.  This ensures that they are unlikely to be late again.