Terry Newson, Area Manager for EC Credit Control in Auckland West covering Mt Roskill to Helensville.
Technology plays such a vital role in our community from social through all business processes so you would think that gut instinct is an outmoded and outdated concept. Perhaps not!
Every day I consult with business owners in the Auckland region about how to prevent debts. Having up to date quality Terms of Trade supported with credit checking facilities such as what Equifax offer, are an absolute must for any business giving credit. Experience suggests the best initial tool is the one you are born with, your gut and the instincts that emanate from it.
Time and time again we hear these sorts of comments after the fact!
“I knew something was wrong with that guy/lady” “I thought this might have happened” “I had a bad feeling about this job” “I should have stopped the deal when they refused to pay the deposit”,
Or the very worst and the one I always make my clients repeat so it can sink in;
“I knew he was a bad payer but I thought I would give him a chance”
“So Jim, why did you go inside the lion enclosure when you know he attacks people” Jim: “well I knew he likes to attack people but I thought I would give him a chance not to eat me”.
When you walk down a dark alleyway your gut tells you that there is a heightened sense of danger due to the lack of light and the reduced escape routes should an incident occur, our senses are designed to protect us from danger but so often people ignore them in business because the desire to make a deal, increase cash flow or a misguided sense of obligation to a potential client causes them to ignore the indications that are present.
You don’t have to stop giving credit but start seeing it as the money that it is. As silly as this sounds if you went to a company and asked for $5,000 cash they would laugh at you and say: “No Way!!!” Or they would do an in-depth background check, make you sign a personal guarantee and put a security over your house. Ask a company for a $5k per month account and many will say yes just tell us where to send the bill.
Credit management tools like Equifax Credit Checking are there to verify information and give you reassurance when transacting with a potential client and nowadays are essential but so is a bit of common sense and trusting your gut. Remember Credit Is a privilege not a right!!
If you would like to find out more about how you can best protect your business and business cash flow, call now for an obligation free appointment with Terry our mobile manager, he will come to your place of work or if you are out in the field can arrange to meet on site or at a convenient café nearby.
Area Manager – Auckland West.