Last week I spammed my LinkedIn connections about my Pay8910 initiative.
Here is a short summary of the comments I received:
‘ Hey Bolderick, did you go nuts?’
‘Stop whining Bolderick, this is a small business issue and very irrelevant. If you want to manage your working capital, just ask for a prepayment before starting to do anything for that client, sent out dunning letters in time , and make them pay interest on outstanding payment. If you do this, money in the bank, as simple as that.’
‘I like the idea of breaking the vicious circle, but your approach is a bit philanthropical. The idea should be to make a decent margin, and as a CFO, you should manage your working capital in a way that the relationship with your suppliers stays ok.’
‘It is a matter of trust. Banks are hesitant these days, so paying your suppliers on time (or even earlier) is hard sometimes’
‘Great idea!’
‘Ok,great idea … and please tell my Italian customers’
Hi,
in economic downturn, cash is short. A first reaction is to pay our bills a few days later. I must admit, we also did it. At the moment we are all waiting for each other to take the first step and start paying our bills on time again.
Let us break the vicious circle on september 8, 2010 by paying euro, dollar 10.ooo more, 10 creditors or 10 days earlier.
This could give our economy an enormous boost!
I would like to know what you think! and tell your customer 🙂
ok,
we have established that paying your suppliers earlier will give an enormous boost to the economy. But how to finance this cash out (without going to the bank and ask for a new loan, ‘ the easy way’ )?
here are some very easy steps to free up cash within in your company. Note: if you do no do it, your bank will ‘ ask’ you to do it!
1) sell excess stock. It is money lying around. Do not worry about ‘bookvalue’ as your creditor does not mind and the cash does not taste differently
2) sell excess machinery. Same as above. Selling via an internet boker is easy and cheap. You will be surprised the money that will come in, even in the bad market situation we are at.
3) stop buying stationary, or anything else that is not directly related to the stuff you are selling. It will ask some creativitity from your people.
4) have your sales invoices sent out earlier. Even when it is automated, I am sure a few days can be won in your logistics.
5) get rid of subscriptions, lease etc. Renegotiate everything.
6) pay salaries a few days later. This one is tricky, but in these days everybody is open for this type of action.
7) Insurance: go from quarterly payments to monthly payments
I am sure you can think of a few more….
!!!PAY 8-9-10!!!
let us all pay our creditors – X – more than we would normally do
–-> on september 8, 2010 <–
One of the main reasons companies go bankrupt is because they do not get their invoices paid– not because lack of business –
— Companies will blossom when they get paid for their services a bit earlier than expected —
So, if you are in any position to influence the guy who is in charge of paying the bills:
–> get him to pay 10 % or usd eur gbp 10.000 or 10 times as much as he would do on september 8 2010 <—
LET YOUR BUSINES GET THE ECONOMY MOVING AGAIN, DO NOT WAIT FOR GOVERNMENT OR BANKS….
!!!!PAY 8-9-10 !!!! 