RIABU - Tips and tools for getting paid on time by your customers: Recent Episodes
RIABU
Customers who pay late are a problem for virtually every company. RIABU’s Simon Littlewood and Mark Laudi discuss what you can do to be first in line to get paid. Credible, authoritative, authentic. This podcast is all about VALUE.
You've been supplying to a particular customer for many years and there's an established process that helps deliver the product or service and get paid on time. But what happens if things change at the customer end and their process suddenly becomes more complex.
In this podcast, RIABU’s Simon Littlewood and Mark Laudi discuss how SMEs can deal with the difficult situation through customer intimacy, a relationship-building process that is a core element of RIABU’s Virtuous Revenue Cycle, and why having a cash flow forecast is important for your working capital.
More than half of the USA SMEs experienced late payments from large companies which significantly impacted their business, delayed hiring, and reduced their ability to recover from the pandemic. Late payments are a persistent dilemma for small businesses which affects their ability to maintain a steady cash flow and invest for the future. With about 31.7 million small business firms operating in the United States, accounting for 44% of US economic activity, what should these firms do to get paid on time? RIABU’s Simon Littlewood and Mark Laudi have some ideas. Read more about this topic here.
Around half of Australia’s big businesses are failing to pay small business suppliers on time. Despite ongoing efforts to reverse the tide, three reports - late payments, transactions, and a survey - show Australian SMEs are just treading water to survive, and with banks tightening their lending and government handouts having disappeared, the risk of survival has increased. What can SMEs do to get paid on time? RIABU’s Simon Littlewood and Mark Laudi offer some ideas. Read more about this topic here.
UK SMEs are struggling to operate efficiently as input costs are rising rapidly in the country, which is impacting their operating margin significantly. As a result, one in five SMEs is finding it difficult to pay their suppliers. In addition, one in four SMEs is facing late payments from their customers as they are also struggling with higher prices.
In this podcast, RIABU’s Simon Littlewood and Mark Laudi discuss how SMEs can focus on strengthening relationships with their customers by understanding their needs and wants, which can result in a faster collection of receivables and improved cash cycle. Read more about this topic here.
The US interest rate received its highest increase since 1994 because the country's inflation reached a level not seen in the last 40 years. All these statistics are making headlines, but how does it impact SMEs? It means that economic conditions are deteriorating and the cost of doing business may increase further which may increase pressure on their margins.
In this podcast, RIABU’s Simon Littlewood and Mark Laudi discuss how SMEs can navigate the turbulent times ahead by giving particular attention to receivables and thereby increasing the cash cushion. Read more about this topic here.
Top-down ownership requires internal stakeholders to adopt a common culture where employees at all levels – from the boardroom to salespeople - are responsible for collecting cash from the customers. The cash collection process can be incorporated at all levels of the organization structure by providing proper training and accountability through KPI metrics.
In this video, RIABU’s Simon Littlewood and guests, Yvonne Rankin Constantine, Director & Founder at Rankin Constantine Global Consulting, and Peter Hone, Rig Inspection Manager in the Asia Pacific and Southeast Asia, discuss the eight elements of RIABU’s Virtuous Revenue Cycle (VRC) which is a cycle of continuous improvement in service culture and delighting customers by anticipating and responding to their every need and ensuring that you get paid on time.
Get more tips on effective cash flow management from our book, Let The Cash Flow. To find out more about how RIABU helps small businesses get paid on time, visit RIABU.com
In Australia, small businesses have been suffering from being paid late by large corporations for years, and the pandemic has made their cash situation even worse. But there is one method to help them get paid faster: clear communication.
In this podcast, RIABU’s Mark Laudi and Anne Nalder, Founder and CEO of Small Business Association of Australia, discuss how communicating clearly with your customers can help your business get paid on time and improve your cash flow in this challenging environment.
While the world’s attention is focused on the conflict between Russia and Ukraine, about 440,000 or 8% of the small businesses in the United Kingdom face insolvency from cash flow problems arising from higher operating costs and difficulties in getting invoices paid on time.
In this podcast, Liz Barclay, UK Small Business Commissioner, and RIABU’s Mark Laudi, discuss the importance of the prompt payment code introduced by the UK government in 2008 to encourage large companies to commit to good payment practices, and how, barring a few outliers, the industry average of payment days has been improving. But Liz believes that more needs to be done. She emphasizes that a company’s board of directors have an ethical responsibility to pay invoices on time. To safeguard the sustainability of their suppliers, it must be a strategic decision rather than an operational one. This, in turn, helps all stakeholders because it enhances the supplier's bottom line, which attracts more investors and qualified workers.
On the other hand, small businesses or suppliers lack negotiation skills and make a variety of invoicing errors. Liz points out that while digital technology has helped many small businesses save time and minimise the number of invoicing errors, it isn't the ultimate solution for getting paid on time. They must be bold and confident enough to propel their business forward by negotiating better payment terms with their customers.
Greenhouse gas is an issue for the whole world and large or small companies have an important role to play in reducing it, but until SMEs bring their cash flows in order, it may be difficult for them to make any meaningful contribution. RIABU’s Simon Littlewood and Mark Laudi have some ideas. Read more about this topic here.
Small businesses continue to face challenges like rising costs and lower demand, which are leading to higher bankruptcies across the globe. While the Chinese government is extending support to SMEs, the UK is moving in the opposite direction. Meanwhile, Eastern European businesses remain vulnerable to external border shocks. Listen to RIABU’s Simon Littlewood and Mark Laudi discuss what SMEs worldwide can learn from these different situations.
The UK government has recently withdrawn support measures that were introduced to help businesses survive during the pandemic, and this has led to rising insolvencies. RIABU'S Simon Littlewood and Mark Laudi discuss what this means and how effective cash flow management processes can tide businesses through this transitional moment. Read more about this topic here.
As the Covid-19 pandemic unfolded, governments and central banks all over the world acted swiftly, using massive amounts of monetary and policy support to prevent insolvencies. However, this temporary suppression of insolvencies may not last much longer, and the fragile companies kept afloat by emergency measures and weakened by the crisis are still on shaky ground. As companies prepare to greet a new year with more uncertainties, it is more important than ever to get their cash flow processes in order so that their businesses can stay standing. RIABU’s Simon Littlewood and Mark Laudi have some tips. Read more about this topic here.
Singapore and Hong Kong are often perceived as cities which feel a sense of competition with each other. And in one respect at least, Singapore is losing out. Xero, an accounting software company, revealed that US$3 billion worth of bills were unpaid to SMEs in Singapore, compared to Hong Kong's US$1.7 billion. Why might this be the case, and what can be done to help SMEs receive their payments more punctually? RIABU’s Simon Littlewood and Mark Laudi have some ideas. Read more about this topic here.
Chinese real estate company Evergrande is struggling to pay down its debt and maintain enough cash flow to stay afloat. And that means that its suppliers are also struggling. Late or non-payments from a large company can wreak havoc on their smaller suppliers, as Evergrande's suppliers have realised. But things don't have to be this way. In this episode, RIABU’s Simon Littlewood and Mark Laudi share more about how suppliers can handle customer relationships in order to protect themselves and their business. Read more about this topic here.
Anyone running a small business will understand how late payments from customers can not only be a problem in the short term, but could also lead to missed opportunities and heightened anxiety, not to mention the failure of your business. That’s because late payments are not just delayed cash flow but involve numerous other visible and hidden costs. In this episode, RIABU’s Simon Littlewood and Mark Laudi discuss these costs, and what businesses can do to prevent late payments. Read more about this topic here.
We've talked about the strengths and weaknesses of tech before, and we're doing it again because it's just that important. Many sellers of accounting software technology claim that their solutions can solve cash flow problems. Some governments also support this view.
While RIABU appreciates technologies that help companies operate more efficiently and that support growth, we believe that when you get paid late, it is because a human being (or human beings) has made a decision to pay you late. In this episode, RIABU’s Simon Littlewood and Mark Laudi explain why managing these human relationships is the real key to invoicing success. Read more about this topic here.
According to the United States’ Small Business Administration, about 20% of businesses fail in the first year, 50% fail within five years, and only 33% survive by the 10th year.
These statistics reveal that keeping a business going is not easy. But if you are a current or aspiring entrepreneur, this shouldn’t kill your entrepreneurial spirit. Instead, you need to understand the major reasons why small businesses fail, and learn from these mistakes. In this episode, RIABU’s Simon Littlewood and Mark Laudi elaborate on some factors that can cause cash flow problems — a major reason for business failure. Read more about this topic here.
If you’ve listened to the RIABU podcast in the past, you’ll know we have an aversion to automating everything in the customer relationship. Because automated messages and emails are easy to ignore.
But there is a role for technology to improve customer intimacy, as in not going on a date with your customer, but about making a date with your customer to talk about payments.
RIABU’s Simon Littlewood tells Mark Laudi how we can use online tools to replace face-to-face meetings, and how to approach your customers in a slightly different way.
If you have read our book, Let The Cash Flow, you will know that just keeping your customer to the time period of payment is difficult.
Even if you had already agreed on terms at the beginning of the relationship and things start off well, payments usually get gradually slower. This natural creep goes against your pre-agreed terms, and it will only get worse if you do not catch it.
Simon Littlewood tells Mark Laudi how to keep an eye on your payment dates.
We speak to someone who has found success in getting her customers to pay her on time!
Cheryl Chan, Global Tender Manager of ModuResources, said in an interview with Simon Littlewood that getting paid on time is down to understanding the customer's payment processes and maintaining a high level of communication.
Listen to Chan tell Simon Littlewood how making the unusual request to meet the finance team during the initial discussions gives her an understanding of how the client's processes work and knowing the contact details of people she can call about payment matters.
If you have run a business you'd be familiar with this feeling: it is time for the customer to pay but you haven’t received anything, and you realise you have no idea who to write to or call. Or that you know exactly nothing about your customer’s internal payment processes.
At RIABU, we recommend doing your homework on when your customer pays its suppliers, how it does it, and other details.
Listen to RIABU’s Simon J. Littlewood tell Mark Laudi how much detail you should get into when finding out about your new customer’s processes.
Collecting receivables is often seen as something that is done only by the finance department. And if you’re a regular listener of the RIABU podcast, you’ll know that we have broadened the responsibility to include salespeople.
But is there anybody else in the organisation who has to keep up with the state of collections?
The title might give it away, but listen to us as RIABU’s Simon Littlewood tells Mark Laudi about the most important people to keep track of receivables, and how such a culture must be present in an organisation that wants to be paid on time.
Your salespeople are not the ones who are writing the invoice and they do not worry about your profit and balance sheet at night.
In fact, if their commissions are not tied to the receivables, salespeople are human and finding out about the balance sheet of the company is probably low down their list of priorities.
After all, salespeople are good at what they do - selling - and why should you complicate things?
RIABU’s Simon Littlewood tells Mark Laudi why it is important to educate your salespeople on certain performance metrics of the company, and how it can be an...adventure.
Suppliers are often the last to find out if a customer is having problems with paying them.
Foresight is better than hindsight. But most of the time suppliers find out too late. Some rely on third-party resources such as subscribing to business intelligence services. But we think we can find out just as much from our contact with our customers.
What are the signs that customers show before they even start having financial stress?
RIABU’s Simon Littlewood tells Mark Laudi the signs to look out for, such as a decrease in business activity, slowing down in payments, an increase in unavailability of the people you want to talk to...listen to find out more.
Let’s say you have done all that we have asked you to do. And you think you have some good processes in place.
But how do you measure the success of the RIABU method?
RIABU’s Simon Littlewood tells Mark Laudi how assessing some measures are as easy as Yes/No, like: "have we gotten this process in place?" And "do we have a proper credit policy?"
Then there are other measurements that are more quantitative, and just as important. Listen to find out more.
Surprisingly, we have received pushback from our own suppliers when we remind them in good faith about some of our RIABU good practices.
They will actually say they feel embarrassed about calling or emailing us after sending the invoice, and they think that we are sure to tell them if something is wrong with the invoice or product.
Do they know what they are doing opens the door for more opportunities for any customer to not pay them on time?
RIABU's Simon J Littlewood tells Mark Laudi about some measures you can put in place to help your supplier get paid on time.
If you want to get an idea of how we do things at RIABU, you can check out the book we have written, Let The Cash Flow. You can get it here:
https://www.amazon.sg/Let-Cash-Flow-practical-customers/dp/9814928291/ https://singapore.kinokuniya.com/bw/9789814928298 https://www.goguru.com.sg/let-the-cash-flow-simon-j-littlewood-mark-laudi
Getting new business is a key goal for any company, but are business owners often too eager to attract customers at the expense of receiving prompt payment?
In this podcast, RIABU's Simon J. Littlewood and Mark Laudi elaborate on why companies often fall short when it comes to ensuring punctual payment and repeat business, as well as the importance of setting the right trading terms when taking on new customers.
If you are having issues with late payment from your customers, Let the Cash Flow is the book for you. Get it here:
https://www.goguru.com.sg/let-the-cash-flow-simon-j-littlewood-mark-laudi
https://singapore.kinokuniya.com/Let_The_Cash_Flow/bw/9789814928298
As COVID-19 gradually comes under control, inflation is expected to gather pace and interest rates are likely to increase. How will this affect SMEs in terms of borrowing and debt servicing?
In this podcast, RIABU's Simon J. Littlewood and Mark Laudi discuss how this will affect the relationship between lenders and businesses, and what SMEs should look out for in light of increased inflation.
If you are having issues with late payment from your customers, Let the Cash Flow is the book for you. Get it here:
https://www.goguru.com.sg/let-the-cash-flow-simon-j-littlewood-mark-laudi
https://singapore.kinokuniya.com/Let_The_Cash_Flow/bw/9789814928298
Overdue membership fees have been a perennial problem for associations, who are all too familiar with a whole host of excuses from members who have not paid up.
In this RIABU podcast, founders Simon J. Littlewood and Mark Laudi elaborate on the steps associations can take to ensure not only consistent payment of membership fees, but registrations from new members who will enthusiastically and pro-actively maintain their memberships.
If you are having issues with late payment from your customers, Let the Cash Flow is the book for you. Get it here:
https://www.goguru.com.sg/let-the-cash-flow-simon-j-littlewood-mark-laudi
https://singapore.kinokuniya.com/Let_The_Cash_Flow/bw/9789814928298
Late payments are such a prevalent issue — especially for small businesses — that some companies now provide legal letter templates designed to chase customers for payment.
In this podcast, RIABU's Mark Laudi and Simon J. Littlewood review legal letter templates from Zegal, a company whose services include helping to "chase late payments in just a few simple clicks".
Can using such services really ease your cashflow issues in the long run, or are they merely a stopgap solution? Find out in this podcast.
If you are having issues with late payment from your customers, Let the Cash Flow is the book for you. Get it here:
https://www.goguru.com.sg/let-the-cash-flow-simon-j-littlewood-mark-laudi
https://singapore.kinokuniya.com/Let_The_Cash_Flow/bw/9789814928298
If you have a good chunk of money stuck with your customers, you might need to get help from some unlikely colleagues: your sales team.
Salespeople want to sell. Collecting on sales ...well, that's another story.
Betting your salespeople to understand that working capital matters, and their role in this, this will pay off in the long run.
RIABU’s Simon Littlewood and Mark Laudi explain how.
Meantime, we are counting down the days to the launch of our book, "Let The Cash Flow". "Let The Cash Flow" is published by Marshall Cavendish and is available in bookstores, on Amazon and other online channels. Get it here: https://www.goguru.com.sg/let-the-cash-flow-simon-j-littlewood-mark-laudi https://singapore.kinokuniya.com/Let_The_Cash_Flow/bw/9789814928298
Like small business owners, freelancers are no strangers to nightmare clients who backpedal on their decisions, attempt to lowball them and worse still — try to wriggle out of paying them at all.
So what can freelancers do to protect themselves from such clients?
Cheryl Marie Tay, a former freelance writer who is now editorial director at RIABU, tells Simon J. Littlewood and Mark Laudi about some essential steps freelancers should take when dealing with clients, the importance of conscientious and proactive customer service, and how to place a value on your work.
This discussion about being a creative freelancer echoes some of the practices we advocate in our book, Let The Cash Flow, which is now available at major bookstores.
Get the book here: https://www.amazon.sg/Let-Cash-Flow-practical-customers/dp/9814928291/
If you are a freelancer or small business owner, we’d love to hear from you — you could even be a guest on our next podcast! Simply email us at service@riabu.com to introduce yourself and find out more.
FACT: If you don't pay active and close attention to your receivables, you WILL start to get paid later and later.
As your company grows you might be tempted to focus more on sales. The terms you grant to your customers will likely start to become more generous.
The painful truth is, unless you actively manage your receivables, you will find your company being owed more and more money.
Why does this happen and what can companies do about it?
Join RIABU’s Simon Littlewood and Mark Laudi as they talk about how you can enforce payment discipline on YOUR terms.
Meantime, we have just launched our book, "Let The Cash Flow".
"Let The Cash Flow" is published by Marshall Cavendish and is available in bookstores, on Amazon and other online channels now.
Get it here: https://www.amazon.sg/Let-Cash-Flow-practical-customers/dp/9814928291/
Media consultant PN Balji got into some unpleasant business when he started running his own consultancy and did not get paid on time by a client.
Balji, who is a well-known former journalist in Singapore, tells RIABU's Simon Littlewood and Mark Laudi how he reacted to a late-paying client, which got him paid within an hour, and why the local media does not report enough on late payments.
The COVID-19 pandemic has affected businesses to varying degrees, and the latest safety measures in Singapore are threatening to further disadvantage SMEs, especially their liquidity.
As Singapore counts down the days to the end of a second 'Circuit Breaker', how can SMEs ensure they remain liquid and get their customers to continue paying them?
The brains behind RIABU and co-authors of Let the Cash Flow (now available on Amazon), Simon J. Littlewood and Mark Laudi, discuss how SMEs can best get their accounts in order and minimise cashflow issues.
Order our book from Amazon Singapore here:
https://www.amazon.sg/Let-Cash-Flow-practical-customers/dp/9814928291/
COVID-19 made 2020 a trying year for businesses everywhere, but a government intervention softened the blow for many, providing sufficient financial aid to keep them afloat.
Now that government aid has slowed down — or stopped in some sectors — while the pandemic rages on, how much can we expect insolvency and bankruptcy rates to rise?
RIABU founders Simon J. Littlewood and Mark Laudi discuss the Atradius Collections report on Western Europe's 2021 outlook, and how APAC will fare in comparison.
In the ancient Akkadian language, RIABU means "fairness". Because paying your suppliers on time, especially SMEs, is an act of fairness.
So, how do you define fairness? To some, fairness is what their lawyer says they can get away with!
RIABU’s Simon Littlewood and Mark Laudi talk about how we could define fairness in payments, and why it matters.
Meantime, we are counting down the days to the launch of our book, "Let The Cash Flow".
"Let The Cash Flow" is published by Marshall Cavendish and is available in bookstores, on Amazon and other online channels.
Local brand platform Naiise has closed its physical stores, and its owner Dennis Tay said he is filing for personal bankruptcy.
Its vendors, who have sold their goods to him on consignment, are demanding that he pay them.
What should a small business owner do to make sure their consignment deal does not go awry?
RIABU’s Simon Littlewood and Mark Laudi talk about the importance of working capital and what an SME owner can watch out for in dealing with a consignment vendor.
Meantime, we are counting down the days to the launch of our book, "Let The Cash Flow".
"Let The Cash Flow" is published by Marshall Cavendish and is available in bookstores, on Amazon and other online channels in April.
We are counting down the days to the launch of our book, "Let The Cash Flow". We wrote it as a how-to guide - not a textbook - showing you some small steps with a big impact on getting your customers to pay your invoices on time. But how do you do it, exactly? RIABU’s Simon Littlewood and Mark Laudi give you a sneak peek. "Let The Cash Flow" is published by Marshall Cavendish and is available in bookstores, on Amazon and other online channels in April.
Are large companies out to delay payments to their SME suppliers?
No, according to Peter Chipman, a 27-year veteran of the energy industry responsible for sourcing supplies globally.
But he acknowledges that MNCs have processes for buying and paying, while many SMEs have no processes for selling and getting paid.
In this discussion with RIABU's Simon Littlewood and Mark Laudi, he shares insights into what MNCs really think of their SME suppliers, and how you can build relationships at eye level with them.
The Singapore government is making it easier for smaller companies to extricate themselves from certain contracts in order to survive.
It's already made it easier for companies to wind up operations laid waste by COVID.
The latest initiative is yet to be passed by parliament - here are preliminary details: https://www.mlaw.gov.sg/covid19-relief/re-align-framework#overview
But how do you even go about talking to suppliers about unwinding contracts? What should you do if a supplier asks you for the same leeway?
RIABU's Simon Littlewood and Mark Laudi explain.
The oil and gas industry is focused more on heavy engineering than warm customer relationships - yet when payment terms are usually 180 days or more, the latter is critical.
That is the journey our guest on this week's podcast has been on, as he cut days sales outstanding (DSO) to just 75 days.
Peter Hone from ModuResources tells RIABU's Simon Littlewood and Mark Laudi how he brought management on board, and challenges some long-held beliefs in the sector.
The Singapore government has passed a law which will make it easier for zombie companies to wind down.
As payments from the Singapore government to help SMEs are coming to an end, companies which have been propped up artificially by them are likely to fail.
The new act will allow SMEs wind up their business more easily.
RIABU’s Simon Littlewood tells Mark Laudi how companies that are ready to wind up can prepare to do so, and how they should approach their customers when they are in such a situation.
Amazon Papyrus Chemicals grew to a US$100 mln company from nothing - but success wasn't always assured.
In fact, delays in payments from customers almost made them go under. Founder Mike Grundy tells RIABU's Simon Littlewood and Mark Laudi what familiar early mistakes he made, and how he turned sales into cash.
On the RIABU podcast we aim to help SMEs get their invoices paid on time.
But how do the big boys do it?
Bill Padfield is a former CEO of Datacraft - a previously Singapore-listed company taken over by South Africa's Dimension Data and now part of NTT.
In this exclusive interview he takes RIABU's Simon Littlewood and Mark Laudi into the tent to reveal the steps he took to turn a cash-losing S$350 mln business into the S$4 bln powerhouse it is today.
Australia's Small Business and Family Enterprise Ombudsman Kate Carnell is proposing to abolish Fringe Benefits Tax for two years, to help Small and Medium Enterprises in two ways:
First, it would remove a compliance burden placed which bigger businesses are able to navigate much more easily.
And second, they would benefit from increased sales as their customers wouldn't have to pay the tax on products and services they provide, and might therefore buy more.
RIABU's Simon Littlewood and Mark Laudi debate the effectiveness of such a cut.
Here is the release mentioned in the podcast:
https://www.asbfeo.gov.au/news/news-articles/axe-fringe-benefits-tax-stimulate-cash-flow-ombudsman
Australian Small Businesses are reluctant to take up loans offered by commercial banks and guaranteed by the state.
The Federal Government announced the Covid SME Guarantee Scheme March 22, and earmarked A$40 billion to guarantee 50% of loans.
RIABU’s Simon Littlewood and Mark Laudi debate why SMEs are reluctant, whether they should take on such debt now, and whether SMEs can even meet the criteria of the banks to take them out in the first place.
Tens of thousands of companies in the US are quietly going out of business.
According to Yelp, and reported by Bloomberg, 80,000 companies just canceled their leases, turned off the lights, and walked away between March 1 and July 25.
SME owners lucky enough to have no debt or liabilities can put their businesses in stand-by mode and live to fight another day.
RIABU’s Simon Littlewood and Mark Laudi discuss how SME owners can hibernate until the economy recovers.
Debt worth more than RMB 3.65 trillion owed by companies in China is due to be repaid to investors by the end of the year.
The Chinese government is encouraging lenders to refinance, accept payment delays or find other solutions.
Hear RIABU’s Simon Littlewood and Mark Laudi in a hilarious discussion about what SMEs can learn from this macro issue of bond debt.
A report by Euler Hermes refers to the government supporting businesses with cash as creating an insolvency time bomb, as this creates businesses that are just relying on government payouts during this time. They are known as "zombie companies".
RIABU's Simon Littlewood and Mark Laudi talk about taking a hard look at your company to figure out if it's a zombie company.
The report by Euler Hermes can be found here: https://www.eulerhermes.com/en_global/APAC/apac-economic-research/Calm-before-the-storm-Covid19-and-the-business-insolvency-time-bomb.html
In many parts of the world a second wave of COVID-19 looks increasingly likely.
With countries such as the United States, Spain, the Philippines, Hong Kong and others bracing for another wave of infections, business owners exhausted from the first wave can be forgiven for wondering how much longer they can hang on.
RIABU's Simon Littlewood and Mark Laudi debate what this means for SMEs are facing a second wave of economic disruption.
Here's the article Simon and Mark were referencing: ‘Calm before the storm’: UK small businesses fear for their future (https://www.ft.com/content/2bef51e5-f581-4ef5-af95-3c344ed7a238)
Some people seriously believe suppliers absolutely deserve to be paid late, to adapt to the customer's cash cycle, as this recent post on LinkedIn bears out.
RIABU's Simon Littlewood and Mark Laudi almost choked on their breakfast when they read it, and respond in this podcast.
The author writes (abbreviations his): "The correct, ethical calc of payment times b/n buyers & suppliers s/b based upon the buyers' cash cycle. Here's an intellectual basis to my assertion: https://lnkd.in/gCwKsgA. During an economic crisis, it is ethical & correct for suppliers to wait longer to get paid if buyers' cash cycles have increased b/c inventory turnover has slowed. The correct solution in our brave new digital paradigm is for Govt to enable digital integration tech to connect the working capital needs of every SME supplier in Australia DIRECT to capital markets."
There are signs all over the world that there will be a second wave of Covid infections. Many countries and cities are reporting record infections.
If your SME has already been hit once by the economic downturn brought on by Covid, how should you prepare for it this time?
RIABU's Simon Littlewood and Mark Laudi review your options.
Exporting your products to customers in other countries might be one way to trade your way out of trouble, especially if local markets are still stagnating.
But financing comes with additional complexities, such as misunderstandings in expectations due to language and cultural barriers, and having less information about the customer in a format you are used to.
In this podcast, RIABU Simon Littlewood and Mark Laudi discuss three common forms of financing your exports.
And here is the link to the story they mentioned.
SMEs in many parts of the world have benefitted from government measures to help them survive - and in Malaysia that means SMEs have enjoyed a moratorium on loan until October.
But even as economies are slowly starting to recover as lockdowns are eased, the revenue shortfall will mean they won't have enough cashflow to repay loans once loan repayments fall due again.
RIABU's Simon Littlewood and Mark Laudi discuss the implications, and how you can survive.
Even famous novelists sometimes don't get paid on time! Just ask Balli Jaswal.
She is well known for her novels Inheritance, Sugarbread and Erotic Stories for Punjabi Widows, but even that didn't help getting paid on time for work commissioned by VOGUE India.
In this edition of the RIABU podcast, she describes what happened, and Simon Littlewood offers some guidance and advice for all freelancers to avoid a similar situation.
We have received an email from a member of the RIABU community, expressing grave concern their invoices to one of their customers will never be paid.
So, on this edition of the RIABU podcast, Simon Littlewood and Mark Laudi investigate what to do if the company you are supplying looks like it will not survive.
Research by Dun & Bradstreet has found a big surge in the number of bankruptcies reported in Singapore in Q1 2020.
Even before the big economic slump, brought about by Covid-19, there was a 70% surge in the number of companies declaring bankruptcy.
More than 5,000 companies have ceased or canceled registration, while another 238 went into liquidation in Q1 2020 alone. Applications for Bankruptcy recorded 1,278 in Q1 2020, up from 757 in Q1 2019 according to the Ministry of Law’s Insolvency Office. Article link here.
In this podcast, RIABU's Simon Littlewood and Mark Laudi discuss how to avert bankruptcy if you are staring down the abyss, and when bankruptcy might actually be a good idea.
With the Covid-19 lockdown ending in many countries all around the world, businesses will not just be getting back to serving customers. They will also be asking themselves how to meet their deferred obligations.
Governments all around the world have provided huge support packages to tide business over the crisis. But in many cases, these just allowed businesses to defer expenses - not to avoid them altogether.
The chickens are going to come home to roost once these deferment periods end. Is your business ready for them?
RIABU's Simon Littlewood and Mark Laudi discuss what you can do to get ready.
An alliance of advertising industry associations has called out some of the world's largest firms for spending US$20 bln annually in Corporate Social Responsibility (CSR) programs, even as they pay their suppliers late.
VoxComm represents industry associations in Malaysia, Hong Kong, Europe, the US, Brazil, Mexico, Australia and others, and says "companies bully agencies into longer payment terms or just flagrantly flout contractual payment terms. The unintended consequences mean agencies in-turn struggle to meet payroll, often 75% of their costs. Then have to delay paying their freelancers and sub-contractors who have been hired to work directly for these clients".
For these sub-contractors, "Their fees are their salaries. It is what pays the rent and what puts food on the table."
Delaying payment was "directly at odds with [the companies'] avowed policy of CSR", VoxComm said. Full story here.
For Simon Littlewood and Mark Laudi, this is of course all too familiar.
In this podcast they discuss the issue and what you can do about it - and end with a rather unorthodox way of getting paid on time.
Email them at service@riabu.com
We are totally thrilled to have secured the support of a large European company for the Pledge2Pay. They wrote us an email stating that they would update their systems, and meet the pledge until the end of the year.
But in the same email, they said they didn't want publicity.
In this podcast, RIABU's Simon Littlewood and Mark Laudi dance around the identity of the company and explain what they are going to do with it. Reach us at service@riabu.com
Many companies are looking to shore up their cash holdings during these difficult economic times. But some very large companies are using the opportunity to change their payment terms, to the detriment of their suppliers.
One such company, which recently reported very healthy sales including during Covid-affected months, recently declared that it would only pay suppliers after 90 days. This at the same time that it boasted of large cash reserves, and redundancy in its supply chain.
In this podcast, RIABU's Simon Littlewood and Mark Laudi discuss what - if anything - suppliers can do about it.
You can also read our blog on this story here.
The Paris-based organization which represents millions of companies in more than 100 countries has recognized the critical importance of SMEs to the global economy and has listed ways that their larger customers can help them
RIABU’s Mark Laudi and Simon Littlewood discuss the announcement by the ICC which closely mirrors RIABU’s pledge2pay, already enthusiastically endorsed by the SICC and ASME in Singapore.
Is this a good sign that the world is waking up to the need to preserve SMEs who (in Singapore) provide nearly 70% of jobs? What are the implications?
Singaporean SMEs are missing out on a cash flow management tool commonly used by companies in the US and Europe: Trade Credit Insurance. It ensures your invoices get paid, even if your customer defaults.
But there's much more to it than meets the eye. While ensuring you get paid is clearly an important feature, there are other benefits even if you never make a claim. And in Singapore, the government even subsidises companies through the little-known Trade Credit Insurance Scheme (TCIS).
RIABU's Simon Littlewood and Mark Laudi speak to Clemens Philippi, CEO South East Asia of Euler Hermes, a division of Allianz and a partner of RIABU, for the most important points you need to know about it.
Simon J Littlewood asks RIABU’s Mark Laudi about the Pledge2Pay initiative and learns that many SMEs cannot borrow and have less than 2 months cash in hand.
With the COVID-19 circuit breaker going into its second month RIABU has launched Pledge2Pay to encourage large companies with sound balance sheets to pay SMEs in 30 days.
SMEs employ nearly 70% of Singaporeans. Many may become insolvent without further help and if they do Singapore’s unemployment is likely to soar.
What can you do to support Pledge2Pay, and why is it so important?
Singapore International Chamber of Commerce (SICC) was the first to jump on board Pledge2Pay – RIABU’s initiative to encourage large companies to pay their SME suppliers in 30 days.
But CEO Victor Mills goes even further. He says invoices should be paid on sight!
In today’s podcast, he tells RIABU’s Mark Laudi and Simon Littlewood why SICC enthusiastically endorsed Pledge2Pay, and he shares his own challenges in managing receivables.
RIABU’s Mark Laudi and Simon Littlewood discuss a recent survey of 4000 US businesses showing that a majority have less than 2 months cash reserve, and that many are either unwilling or unable to access federal support.
Many may go under without further help, 3% already have, and unemployment is likely to soar.
What can US SMEs do to generate the cash they need to survive? How does the US situation compare with other countries dealing with COVID-19, including Singapore whose efforts have been much lauded? What lessons can business leaders everywhere learn?
COVID-19 measures have interrupted your business, and it may take a year for activity to return to former levels, but you have been busy making the changes you need to survive.
RIABU’s Mark Laudi and Simon Littlewood discuss how, having successfully realigned your business to survive reduced activity and identified how to thrive by taking share (and people) from competitors, you can embed a new focus on profitability with a balanced scorecard.
COVID-19 measures have interrupted your business, and it may take a year for activity to return to former levels.
RIABU’s Mark Laudi and Simon Littlewood discuss how, having successfully reduced costs and optimized cash flow in order to survive the downturn, you can now make cost awareness and cost optimization part of your DNA in the future. Set the objective of ensuring that costs as a percentage of revenue come down every quarter - delight your partners and shareholders.
COVID-19 measures have drastically reduced revenue for many, and it may take at least a year for things to get back to normal.
RIABU’s Mark Laudi and Simon Littlewood discuss how (when things are tough) you can identify competitor staff you want to recruit and get ready to onboard them when things start to improve - especially where they bring new customers or strategic expertise.
COVID-19 measures have drastically reduced revenue for many, and it may take at least a year for things to get back to normal.
RIABU’s Mark Laudi discusses with Simon Littlewood how there may be opportunities to acquire or invest in weakened (and undercapitalised) competitors, who offer technology, access to new markets or advantageous supplier relationships.
COVID-19 measures have drastically reduced business activity. It may take at least a year for things to get back to normal.
RIABU’s Simon Littlewood explains to Mark Laudi that business leaders who have used the crisis to get closer to customers and competitors and to maximise free cashflow, should identify and capture new growth by displacing less resilient competitors, if necessary using liquidity to attract and retain them with gentler terms of trade
COVID-19 measures have drastically reduced business activity. It may take at least a year for things to get back to normal.
RIABU’s Simon Littlewood explains to Mark Laudi that business leaders sometimes hold back on honest communication as they are afraid of giving bad news. To retain the trust of staff, customers and other stakeholders leaders need to frame the challenge clearly, explain what needs to change and why, and make the changes quickly so that confidence levels can then be restored over time.
COVID-19 measures have drastically reduced business activity. It may take at least a year for things to get back to normal.
RIABU’s Simon Littlewood explains to Mark Laudi that businesses should take rapid steps to trim headcount costs, and shed discretionary and other spend. This podcast includes a detour into economics as Simon points out the dangers of governments bailing out the private sector with borrowed money.
Uncertainty creates the opportunity for you to change your relationships with suppliers. You can help your cash situation and build lasting relationships.
RIABU’s Simon Littlewood tells Mark Laudi how to selectively aggregate supply with fewer suppliers, and how to work with them to plan for a future together.
If you are tempted to start pressuring your customers now that times are tough, think again. You need them, they need you, so pay increased attention to their needs and concerns.
RIABU’s Simon Littlewood tells Mark Laudi how companies can identify the important customers they should be paying closer attention to, and how to have additive conversations with them around improved service and support which will deliver good commercial outcomes.
Below is the "virtuous revenue cycle" illustration Mark and Simon discussed.
The shutdowns occurring around the world mean life has changed significantly for most companies. Some will fail altogether. But companies that are agile and prepared to adapt quickly can survive and emerge from shutdown in good shape, positioned for growth.
RIABU’s Simon Littlewood lays out 10 things that companies need to do NOW to be winners, and expands on the first one - "plan to survive".
SMEs are now facing unprecedented challenges due to the COVID-19 situation. RIABU’s Simon Littlewood tells Mark Laudi about the necessary measures SMEs must quickly take to survive this crisis.
The measures include using a binary approach to customers, cutting your losses, and reviewing your headcount. They will not make everyone happy, but these actions are pragmatic and might just save your company.
As the COVID-19 outbreak gets declared a worldwide pandemic, a Singaporean minister warned that things may change on a permanent basis and this means businesses would also need to change the way they operate.
RIABU’s Simon Littlewood tells Mark Laudi how this crisis provides opportunities for companies to improve their relationships with their customers, but warns against offering discounts.
Bombardier has been criticised for making a £5,600 payment to a caterer after half a year, much longer than its own payment terms of 60 days. RIABU’S Simon Littlewood tells Mark Laudi what SMEs can do to avoid being in such a situation, and it is simple – just have the initial conversation. Listen to find out how to have the initial conversation with your new customer.
We contacted Bombardier for their side of the story but we did not receive a reply.
Naiise is a Singaporean design retailer that sells products on consignment. It said that it is transitioning from a startup to a full-fledged company, and that it is automating its payments, but its suppliers are saying they are still not seeing their money.
RIABU’s Simon Littlewood tells Mark Laudi his opinion of automating payments. Listen to the end for one of Simon’s retail stories about how products can suddenly move to the front of the shelves in supermarkets.
We contacted Naiise for their side of the story but we did not receive a reply.
The Singapore government has downgraded its forecast for its economy this year, and there is a possibility of a recession.
RIABU’S Simon Littlewood tells Mark Laudi the steps SMEs can carry out to manage their cash so they can keep the lights on and pay their employees. Also, advice for companies that are not prepared for this downturn to prepare better for the next one.
In Australia, Rio Tinto and Telstra have come under scrutiny for their use of dynamic discounting, which means they were insisting on a discount of 2% for invoices that they will pay on time to their suppliers. The two companies have since ceased this practice.
RIABU’s Simon Littlewood tells Mark Laudi five steps you can take to protect yourself from your customer insisting on dynamic discounting, and what you can do to get an exemption from it.
The novel coronavirus has created an environment of fear worldwide. The number of visitors to Singapore has gone down and conferences have been cancelled. Payments might be slower than usual.
RIABU’s Simon Littlewood tells Mark Laudi the steps you can take to protect your business from the negative environment. They include figuring out the customers who are important to you, and extending service, or if you can, financial support, to them.
Selling your goods on consignment can be tricky as you don’t get paid unless your goods get sold.
RIABU’s Simon Littlewood tells Mark Laudi specific processes you can implement – payment terms, stock checks and service - with your customer to ensure you get paid.
We debunk some known truths about receivables - should you propose partial payments, or turn overdue accounts to a collections agency? Or reward your customers for paying promptly?
RIABU’s Simon Littlewood talks to Mark Laudi about what you have to watch out for when you read advice online about managing your receivables.
Fintechs offer automation solutions, which is often seen as a panacea to payments. Although we agree that automation can provide you with clearer and faster data, can it make sure your customer is more likely to pull the trigger on your payments at the end of the day?
RIABU’s Simon Littlewood talks to Mark Laudi about what automation can do and can’t do in helping you get paid.
Chinese New Year is coming up in Singapore and as we wind down for a long weekend, we would still like to get paid before that.
RIABU’s Simon Littlewood tells Mark Laudi how an upcoming public holiday is the perfect excuse for your customers to delay your payments, and how you can use customer service to mitigate the typical excuses your customers might throw at you.
Singaporean SMEs have scaled back their expansion plans for 2020 due to a slower economy ahead. Companies have been advised to “watch and wait”.
RIABU’s Simon Littlewood tells Mark Laudi what measures they can put in place to guard against the potential impact of a slowing economy
The government in New South Wales will pay their suppliers in five days, down from 20 days. They are stepping up to plug the cash flow gap, but does it help late payments to SMEs?
RIABU’s Simon Littlewood tells Mark Laudi that big businesses need to step up and pay small businesses faster, and if automation and technology will help companies get paid faster.
In a poll by The Federation of Small Businesses (FSB), almost half of small firms in the UK are predicting a downturn in their performance for the near future.
RIABU’s Simon Littlewood tells Mark Laudi his advice to SMEs looking to start the year well on the receivables front, by looking at specific risk components and ironing out any difficult relationships with their customers.
Late payments became prevalent in the wake of the 2008 financial crisis and have remained. Now that a recession is coming, it seems companies are going to continue using this excuse.
RIABU’s Simon Littlewood talks to Mark Laudi about how smaller companies can use consistent customer service as a way to deflect any excuses for late payment from their customers
Surveys have shown that late payments have caused nine in 10 small business owners to suffer from mental health issues while it has also caused some SME owners to stop paying themselves salaries.
RIABU’s Simon Littlewood and Mark Laudi talk about how to manage and screen your customers so that you don’t need to suffer anguish and mental health issues over late payments.
Law firms experience difficulties in getting paid, with them never seeing payment for up to 14% of all hours billed to their clients, according to Clio’s 2019 Legal Trends Report.
It might be hard to sympathise with law firms who get ripped off by their customers, considering that they charge such high fees and have little assets in their business models.
RIABU’s Simon Littlewood and Mark Laudi talk about the value of having upfront discussions with your customer, and ask questions such as:
- Should there be a tier system for customer service experience to avoid delayed payments?
- Should there be upfront negotiations over ancillary charges?
- Do offering more payment modes result in more prompt payments?
The Ogdensburg International Airport has been seeing delayed payments for its security force from the OBPA, the city’s bridge and port authority. OBPA is already three months behind on payments. This is an unfortunate case in which the payer and the payee are both struggling for cash.
RIABU’s Simon Littlewood and Mark Laudi talk about what you should do if your operations are three months overdue on payments to your suppliers, and at what point to decide that you cannot continue with the business anymore.
Construction has stopped in a nuclear plant in Argentina because the government is late in its payments to the contractors.
Late government payments are an endemic problem in the construction industry and in many countries as governments run low on cash towards the end of the year.
RIABU’s Simon Littlewood and Mark Laudi dare to ask the question that is on everyone’s mind when they read about this - what happens when contractors don’t get paid? They do shoddy work. What happens when there’s shoddy work in a nuclear plant?
Most business owners think only positive thoughts when they start their company, but when it fails, they usually end up with huge debts and can even lose the family homes they put up as collateral for loans.
RIABU’s Simon Littlewood and Mark Laudi talk about what new SME owners need to know about the invoicing process and managing relationships with their customers so that their businesses stand a chance of surviving.
If you’re spending your early mornings and late evenings chasing payments, you’re not alone. SMEs in the UK spend 56.4 million hours a year chasing overdue payments, most of which is done after hours. And at any given time an SME has nine outstanding payments.
The phrase: “cash is oxygen” is often used to describe the small businesses, meaning they should get paid on time, all the time. But is it always the customer’s fault if payment doesn’t come on time? What can companies do to stop chasing payments?
RIABU’s Simon Littlewood and Mark Laudi talk about the need to manage your receivables and customers properly, and why if you find yourself always chasing payments, it’s always too late.
More than half of B2B sales in the UK are now made on credit as opposed to cash transactions, as businesses try to make themselves more attractive to potential customers amid the uncertain climate of Brexit. But credit can also lead to a cycle of late payments and 45% of UK businesses are reporting that they are delaying payments to their own suppliers due to being victims of late payments themselves.
RIABU’s Simon Littlewood and Mark Laudi talk about how to make sure payment terms are agreed upon by all the parties so that your customer is more likely to pay you on time.
In order to get paid on time, we need to be able to establish the credit policy early, at the start of the agreement.
But some suppliers might think it will interfere with their process of selling their service if they were to reveal their credit policy at the start.
What can we do to ensure that all terms and conditions are clear to the parties involved at the beginning?
In this podcast, RIABU's Simon Littlewood and Mark Laudi discuss the importance of drafting a credit policy when you start a relationship with a customer.
E-sports, a rising industry in which young people sit on chairs and play games against one another, is an industry that will hit US$1 billion in revenue this year. But it is populated by tournament organisers who do not pay their freelancers on time.
RIABU’s Mark Laudi interviews Simon Littlewood on his experience of having a son who plays in an e-sports team and the considerations for any e-sports player when chasing payments.
This is the first time we’ve heard of this reason – a lower league football club (fourth tier) in England has said it is unable to pay its staff and players because it was still waiting for "international payments" and said Brexit was having an impact on its finances.
Even though Brexit still hasn’t happened.
RIABU’s Simon Littlewood and Mark Laudi discuss how uncertainty from Brexit can cause massive disruptions to the supply chains of businesses, even before the United Kingdom leaves the European Union, or if it does at all.
We are exploring reverse factoring in this week’s podcast.
Reverse factoring involves the customer extending credit to the supplier. So the customer pays up straight away, minus a certain margin. Although it is one way for SMEs to get their customers to pay on time, it asks the question of whether the smaller company should even enter a relationship with such an imbalance of power.
RIABU’s Simon Littlewood and Mark Laudi talk about why some companies agree to accept a discount for on-time payment, and how to avoid giving discounts in the future.
SMEs in India take longer to pay, and they take longer to get paid. And SMEs are borrowing to pay for late payments. And on top of that they have to pay GST for any transactions. This cycle of bad payments is creating a lot of stress on companies.
RIABU’s Simon Littlewood and Mark Laudi talk about whether getting larger companies as customers is the better way to break out of this vicious cycle. But can they even choose their customers? Is the 45-day rule even effective, and do companies even invoke the law when relationships are at stake? Listen to find out how you can get a free coffee from Simon Littlewood!
RIABU went to this year’s Singapore Fintech Festival at Singapore Expo, and we found a lot of platforms that want to lend money to SMEs according to their algorithms.
But none has promised to help SMEs get paid faster. And we know most of the SMEs that need the money will still not be able to make the credit score of these fintech lenders.
RIABU’s Simon Littlewood and Mark Laudi talk about why the human touch is still important in this age of AI and automation.
KYC, or Know Your Customer, is a process businesses go through to verify the identity of their clients.
This can be a serious matter as companies that do not do their due diligence and get to the bottom of their customers’ dealings run the risk of being culpable in court if they are found to be involved in money laundering or terrorist financing.
Now, as if it is not complicated enough, banks, insurers and financial institutions are demanding that their companies provide information on their customers, and their customer’s customers, thereby extending the acronym to KYCC (Know Your Customer’s Customer).
RIABU’s Mark Laudi and Simon Littlewood discuss whether businesses are really heeding the call to do more due diligence on their customers.
The protests in Hong Kong, which have been going on for almost five months, are taking a toll on the city’s economy and local businesses. According to the government, retail sales in August fell 23% from a year earlier and were the worst on record.
RIABU’s Simon Littlewood and Mark Laudi talk about what SMEs that are suffering in Hong Kong’s economic climate can do to reduce their risk in such a tough situation where their customers are likely struggling as much as them.
About 920 Malaysian contractors are missing payments of around RM 52 million. And politician Datuk Seri Dr Wee Ka Siong has questioned why there are delays in payments made to these contractors who built houses as part of the government’s RMR1M project.
RIABU’s Simon Littlewood and Mark Laudi talk about how the flow of money to the suppliers can be changed, especially in government payments.
The construction industry in the US is suffering from 51 days sales outstanding, the longest of any industry in the country, according to a report by construction finance software platform Rabbet.
RIABU’s Simon Littlewood and Mark Laudi talk about the nature of payments in the construction industry and how subcontractors can manage relationships with their suppliers and remove obstacles so they can get paid on time.