Cashflow is our topic of the week again.
Last week we stressed the importance of asking for what you are entitled to. However this is much easier to do if you have the right legal documents in place. Contracts that include clear payment terms will give businesses some legal weight behind them. At the time of negotiating the sale, if both parties have clear expectations about the goods and services to be delivered and clear understanding about payment terms (and the process for payment) many points of subsequent discussion can be removed.
Cash collection isn’t something to be considered when payment is overdue – it is for consideration when the parties are establishing the terms of business.
