Get Paid What You Are Owed Now or Plan on Getting Paid Later

After reading Article #1 titled "Is Your Business Owed Money?" in my series of "Recover Your Business Profits" blog posts, your business should have concluded to use a third party which is a profit recovery company to free up those profits which are tied up in late past due accounts receivable.

Another critical decision that must be made now is when to hire the third party!

Well an important fact to know is that the majority of what will get recovered will occur within less than 2 months after starting the third party effort.

So the first question you need to ask yourself this time of year (especially if your debtors are consumers - B2C) is, "Do you realize that the holidays are almost here?"

Wouldn't you agree that the holidays are an expensive time for businesses and individuals? There are typically special business lunches/dinners, parties, bonuses, raffles, greeting cards, gift certificates, etc. Individuals typically buy presents, cook meals, travel, etc.

What expenses do you think will take priority during the holidays if there is a limited budget? The priority will inevitably be business expenses to build employee morale and personal expenses for the family. Paying externally focused debts over internally focused expenses will not be the priority! Even worse, those internally focused expenses may be covered via credit cards resulting in an accumulation of even further debt.

So if your business does not get paid for the money it is owed now before the start of the holidays, these clients will probably spend the money they owe you on their holiday priorities versus paying you!

Get the third party profit recovery company hired by mid October to allow sufficient time to obtain the money owed before Thanksgiving and Black Friday (which is the biggest shopping day of the year). Otherwise do not count on a high likelihood of getting paid before the end of January after credit card bills are paid.

Finance your holiday and not theirs!

Now the second question you need to ask yourself this time of year (especially if your debtors are businesses - B2B) is, "Do you realize that most businesses close their financial books at year's end and base bonuses on it?"

Wouldn't you agree that business executives drive very hard at the end of the year to exceed objectives and financial targets to get the largest bonus possible?

Are you aware that in addition to financial targets relating to revenue/sales and profitability, most businesses have a financial target relating to cash flow? Do you know that cash flow is increased by not only getting customer payments in early plus reducing capital expenditure and inventory but also by paying suppliers as late as possible?

If they know you are "flexible on your terms" and they can take advantage of you by paying late, do you think they would delay paying until after December 31st if at all possible knowing that it would improve their cash flow in comparison to their target and increase their bonus?

So if your business does not get paid for the money it is owed now before the holidays at the end of November, these clients will probably delay paying you the money they owe you to help "lock-in" their bonus.

Get the third party profit recovery company hired by mid October to allow sufficient time to obtain the money owed before Thanksgiving. Otherwise do not count on a high likelihood of getting paid until January.

Finance your bonus and not theirs!


To inquire about how you can get your money before the holidays and benefit from a flat fee of @$10 per late past due account via a profit recovery service which has an average recovery rate of 56% in 40 days for accounts turned over before they exceed 90 days late,

call us at:

818-710-0244

Series: "Recover Your Business Profits"
Article: #H "Get Paid What You Are Owed Now or Plan on Getting Paid Later"