Page 7 - Business Sense

PAYMENTS OVERDUE?

Debbie Jones, Director, as soon as the invoice becomes copy of the invoice attached. The The caller should: relationship has irretrievably
Three Peaks overdue, your firm may be able email should say that payment ■ State the purpose of the call broken down.
Payment House to close the payment gap by is overdue and your client must clearly, directly and early on;
presenting more flexible payment arrange payment as soon as ■ Ask your client why payment Suggest automating payments
options, such as changing possible or contact your firm if (completely)
ow to the payment date or offering they’re in financial difficulty. hasn’t been made; and
have instalment payments through More often than not, a subtle ■ Listen attentively and Sometimes, companies end
HTHAT Debit Order. Whilst alternative reminder is all that’s needed to respond firmly, politely and up writing off unpaid invoices
conversation payment routes don’t guarantee spur an otherwise motionless empathetically. (particularly those of well-
with your payment, they do move the dial in client into action. intentioned clients) because they
client. When trying to preserve a weren’t effective payment-chasers.
the right direction. client relationship, going to court But the reality is that your firm is
7 days late in the business of doing business,
Structure the conversation If payment still hasn’t been made is always a matter of last resort. not debt collection!
If your client is reliable in the
(clearly) seven days after an invoice falls payment department, exercise
Professional firms might spend Often, a client who is trying due, it’s time to send a follow-up your discretion to allow them To ensure that your firm’s
their days advising clients on to delay payment will wait until email stating that the invoice is more time to pay. But if your invoices are paid on time – every
time – you can also choose to
their finances, but even they are payment is due before advising still outstanding and payment is client is a serial late-payer, which automate the payment process
aren’t immune from the problem you that they didn’t receive required within, say, 14 days to is costing you time (and money) by suggesting your clients
of late payments. your invoice. avoid escalation. to chase, stress that the matter pay you by Debit Order. With
is now urgent and payment is Debit Order, your firm can stop
Having a challenging 1-3 days late 21 days late required immediately to prevent
conversation with your client A client can easily ignore your legal action. chasing unpaid invoices and start
about money isn’t most people’s Your firm has delivered a service, firm’s emails, but it’s much more chasing new business. n
idea of fun, but most small firm your client hasn’t paid for it and difficult to dismiss someone on 30+ days late
leaders will need to do it at all you can hear are crickets. the phone. Contact Details
some point. With that in mind, So, it’s easy to think that non- If your client hasn’t made T: 0861 373 257
we’ve compiled some tips to help payment is intentional, but it may At the 21-day stage, if your payment (or meaningful contact) E: info@threepeaks.co.za
you chase your client’s unpaid not be. Genuine oversights happen client still isn’t playing ball and within 30 days of the invoice A: Offices in JHB, CT & DBN
invoice (without chasing your all the time, so give your client your invoice continues to gather becoming due, it may be time to
client away). the benefit of the doubt (especially dust, you may want to escalate issue a letter of demand (Section
first-time offenders). the matter by enlisting the help 129 compliant), or to pass over the
Start the conversation (early) of a senior staff member to chase matter to a debt collection agency.
Once the invoice payment
When chasing an unpaid deadline has passed, a junior staff payment over the phone. If a letter of demand doesn’t
invoice, it’s important to member from your Accounts Before making the call, prepare trigger payment (typically,
remember that payment is already department should give your a list of potential excuses for within 30 days) then legal
late. So, don’t procrastinate. By client a gentle nudge by sending a non-payment and outline proceedings may be necessary,
making contact with your client firm – but friendly – email with a responses to them. which is a clear sign that your

UPWARD MOBILITY: A WAY TO PROMOTE IT

Andrew Layman, Senior Consultant, allowed some people to bypass the encouragement of progress this programme, especially staffing structures which often
Catalyx Consulting the lower rungs, many more but must provide impetus among our younger staff (most seem to be cast in stone. Perhaps
have had to climb rung by rung, and incentive to those whose of our staff are young and there the working world of our era
their developing competencies, enthusiasm might be easily are nearly twenty interns) has requires less adherence to these,
he aspiration for upward knowledge and insights being dulled by indifference. been far beyond expectation. and much greater flexibility to
mobility is sometimes
Tattributed to people who based on the experience of work. At Catalyx, we have such a Including degrees and diploma recognise and move the talent
have reached the extension, as There are several aspects which programme, introduced a year courses for which some staff are upwards; creating posts for
it were, of the career ladder. require consideration. Many ago, which has elements of carrot enrolled, 16 people completed people, rather than putting
Their search is for higher young people are misplaced, and stick, but rather more of the over 400 hours of study during people into posts. And if we can’t
provide the further incentive
2018, while more than half the
executive status, more perks, or perhaps ‘unplaced’, in their former. Our people are expected, staff of 75 managed to achieve of advancement, we should
more luxurious cars and a larger jobs because desperation for as a KPI, to do at least 24 hours the threshold of 24 hours. be happy to see their efforts
salary package. This tends to be employment has overridden of study during the year, each Enthusiasm and commitment rewarded elsewhere, for by this
supported by companies which conscious, deliberate choice. hour earning a so-called Career have emanated from youthful means our country’s workforce
have expensive programmes for At the same time, the paucity Development Point (CDP). We competitiveness which was will be strengthened and all
executive advancement. It is of cohesive and relevant career have provided a high level of not foreseen. A race to the business will benefit. n
as well that this support for the education has seen a ‘job’ assume support, including an internal top is evident which, together
development and emergence of greater importance in the mentorship programme, and with greater pressure from
top executives is in place, for the mind than a ‘career’. Secondly, extensive research into suitable management beyond this pilot Contact Details
country needs its businesses, even despite that it may be free online courses. A database year, will draw others into T: 0861 888 985
its employers and its engines of job rather than a career, the of 120 such courses is available the study-for-advancement E: info@catalyx.biz
economic growth to be led by employee must have aspirations to staff in the belief that online regimen so that they too may W: www.catalyx.biz
South Africans, particularly those and a determined enthusiasm study is a great deal easier if a feel the satisfaction of self-
who have been marginalised from to facilitate his or her own webpage link is already available. accomplishment.
such leadership opportunities in progress. Unfortunately, in Our various offices have extra
the past. many cases, school education opening or closing times to allow For the employer, this type of
may not have prepared young people to use the company data facilitation is not the whole deal.
However, it is the section of people to take responsibility facilities to reduce the cost to If skills development does not
the ladder from the ground that for their own destiny. Then them, while some time for study relate to personal progress in
is relevant for most employees. there is the employer and the is allowed during office hours. one’s career, it has limited value.
While it has become increasingly workplace environment which Opportunities for promotion in
true that qualifications have must not only be conducive to The level of enthusiasm for any company are restricted by

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