Comments on Small Biz Thoughts by Karl Palachuk: SOP Friday: Cash Flow Weekly Procedure

Thanks Karl. Awesome post as always. We just sta...

2012-01-04T09:09:19.161-08:00

Thanks Karl. Awesome post as always. We just started implementing the getting paid first principle and we are very happy with the results.

Our A/R before was only 15 days but I still worried about payroll...

Our biggest problem is with our largest client who pays very late. They are a national medical software company worth over $1bn. They recommend us all over the place and we have grown significantly because of our alliance with them throughout the US. What would you do here?

-Jeff

Thanks for the feedback, John. Basically, YES: Th...

2011-12-30T15:50:01.154-08:00

Thanks for the feedback, John.

Basically, YES: The cost of taking credit cards is just part of the cost of running your business. It dramatically improves your chances of getting paid in advance AND increases the total amount of money you collect.

See the note in the middle of this post: http://blog.smallbizthoughts.com/2011/09/sop-friday-cash-flow-getting-paid-in.html

Money that's due to you gets old. And the amount you'll accept in order to get it off your books goes down over time. It doesn't take long for the value to drop below your credit card rate.

Having said that, you need to beat up your card processor every year for the lowest rate.

2011-12-30T14:10:54.770-08:00

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I enjoy reading these posts on Friday! At our comp...

2011-12-30T14:10:22.627-08:00

I enjoy reading these posts on Friday! At our company we bill the clients on managed services but the checks can sometimes come later than we like. A lot of the clients would pay by credit card but then we feel we would be losing money on the fees. Is that just the cost of helping the cash flow?