ISO9001 Terms and Conditions of Payment
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The current
situation where banks and financial institutions are not lending to industry
is causing serious damage to our economy. It has become clear that companies
are delaying bill payment until the last possible moment and in turn this is
causing cash flow shortages not seen even in the 80's recession.
The inevitable
result is that organisations at the end of the purchase chain are being
starved of cash and in some cases this cash-flow shortfall is putting viable
companies out of business. I have noticed that some companies are unable to
accept new orders because they do not have the cash to purchase raw material
to service the orders.
The vast amount
of cash advanced to the banking industry was designed to allow them to restart
lending to industry; instead the banks used this cash to shore up their
balance sheets instead of being made available to lend.
We are told
that the borrowing by the Government will take up to twenty years to pay
back. The pay-back time may be considerably longer if our mainstay industries
are no longer there.
Companies that
have ISO9001 in place are better placed to weather the downturn as they have a
solid set of terms and conditions which include payment terms.
Remember those
who shout loudest and have good control of their sales ledgers will the first
to be paid; this may be the difference between survival and insolvency.
Tags: iso9001,
terms and conditions
About the Author
Chris Eden FIBC, MISSA, ACQI is a director of Quality Matters Limited an established independent management consultancy based in Essex, UK which specialises in ISO9001 Quality Management consultancy.
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Article Published/Sorted/Amended on Scopulus 2009-07-06 13:04:53 in Business Articles
