FRANK KNIGHT, CEO OF DEBTSOURCE
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In an increasingly strained economy, what are the top credit management tips for small businesses?
Growing a business in a strained economy is tough. Getting paid by your customers in a strained economy is even tougher. With the economy having contracted by 3,2% in the first three months of this year; April liquidations up by 53,1%; and business confidence at some of its lowest levels since 2011, there can be little doubt that the South African economy is strained. Businesses that sell their goods and services to other companies on a trade credit basis are specifically under pressure as they face the prospect of limited growth, coupled with cash flow consequence of ongoing payment default.
To adjust to this new reality, businesses (especially smaller ones) have to quickly adapt their thinking to survive this pressure or face the possibility of becoming part of the statistics. But how do businesses adapt? What must business owners do to adjust to the current economic pressure, and how does a business survive the tough times?
Growing a business in a strained economy is tough. Getting paid by your customers in a strained economy is even tougher. With the economy having contracted by 3,2% in the first three months of this year; April liquidations up by 53,1%; and business confidence at some of its lowest levels since 2011, there can be little doubt that the South African economy is strained. Businesses that sell their goods and services to other companies on a trade credit basis are specifically under pressure as they face the prospect of limited growth, coupled with cash flow consequence of ongoing payment default.
To adjust to this new reality, businesses (especially smaller ones) have to quickly adapt their thinking to survive this pressure or face the possibility of becoming part of the statistics. But how do businesses adapt? What must business owners do to adjust to the current economic pressure, and how does a business survive the tough times?
