How We Handled Our Debt Problem

I have been running my own business for several years, and I thought I was doing pretty good with it. I had made some wrong choices though, and it was starting to affect how I was able to run the day to day operations. When I first started, I was very generous with loan terms for my clients. As a result, I am still collecting everything owed to me but not as fast as I need it. My partner looked at several options for us, and we finally decided that invoice discounting was the way we wanted to go.

We did not want any of our clients to know that we were in this position, so we did not feel comfortable selling the debt that is owed to us. We wanted to maintain the highest confidentiality so we would remain trusted in their eyes. With invoice discounting, we would be able to borrow against the debt. It was quite easy to do this because we have never had a single customer default on what they owe us. With our ledger looking as good as it did, it was obvious that we were generous but responsible too.

We were able to work with a company that does invoice discounting, and they have made such a positive impact on our business. While we are going to have to lose a bit of money for doing it this way, we learned a valuable lesson or two from it too. We know that customers are still going to want to use our company even if we are not so generous in the future with our terms. We also learned that taking on a slight debt but maintaining a positive reputation is absolutely worth it since we did not lose any customers by handling it the way that we did.

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You Can Never Be Too Prepared

I have a friend who is one of the most paranoid people on the planet. He always thinks that something bad is going to happen to him, no matter the time or place. When he first moved into his home, he was worried that someone would break in and steal all of his items, or worse, hurt him in his sleep. I don’t know where he gets these ideas, but it really has a negative effect on his mind. He went to to sign up for home security service and have an alarm system put in his house.

Even though my friend is always paranoid, sometimes he does have his moments where he is right. Read More

Categories: Information