When Will I Get Paid?- Valutrics
You might be living paycheck-to-paycheck and worried about that state of affairs, so you decide to set aside money in a rainy day fund, to quell the anxiety of non-payment at payday. Or worse, you may go to a payday lender and borrow at some crazy interest rate – potentially starting a cycle of borrowing that is virtually impossible to stop. You’d decide which bills to pay, which bills to put off until you get paid, and perhaps repeat that process every pay cycle.
Not knowing when your salary will be paid costs you money and time – and it extracts a real cost that’s hard to put into dollars and cents.
It’s not terribly different if you run a business selling to other businesses.
Not knowing when your customers will pay you can trigger all kinds of problems. First, you need to hire people to manage iing payments. You would rather have them running and building your business – increasing sales, finding new opportunities, bing more productive. But instead, they spend their time managing the receipt of funds earned for goods and services signed, sealed and delivered.
Not knowing when cashes in affects all sorts of other business decisions: Will I have the cash flow to make payroll? Do I hold thatpany offsite in the Rocky Mountains? Do I buy that new piece of equipment that can make me more productive? And it leads to ufortable conversations with customers – phone calls, emails, faxes, ‘Dunning letters’. Maybe it forces you to consider options to finance that can be costly and non-productive.
That simple question “When will I get paid?” is one of the last great unturned stones of business inefficiency. In the 21st century of fast-paced, fast-changing global business, it cries out for a better way.