Payment terms is top cashflow concern
How to agree payment terms is the single biggest headache for owners of the smallest businesses, with three times more interest in the often thorny subject than any other cashflow issue.
According to download figures from the Institute of Credit Management, its Payment Terms (PDF) guide – authored by the government, outstrips the nine other titles in its advisory series by three to one.
The guide, which has been downloaded over 250,000 times, provides the smallest of business with help on the potential pitfalls of agreeing payment terms and offers tips to ensure best practice.
Its dominance at a time of economic uncertainty, over other ICM titles including Invoicing, Chasing Payment and When Your Customer Goes Bust, indicates an onus on traders to “tread carefully and not take unnecessary risks.”
“Having an increased awareness of one's own payment terms - and the implications of those terms - is one of the best ways that a business can protect itself," the institute added. “For a second year running, the Payment Terms guide has seen the highest number of downloads, though this year by an even greater margin.”