Direct Cashflow Solutions is unique in the cash management industry. We do not want to collect your debt after your credit terms have been exceeded by your customer.  We want you to make the most of your sale and ensure that your invoices are collected on time.

Interest free loan

If you were asked by someone in the street that you had never met to make an unsecured interest free loan of 30 days it wouldn’t take you very long to say “NO!” This is effectively what you are doing when you allow a customer credit terms. You are giving them your goods or services free until they pay you to credit terms. Your company has to finance this loan until it is paid back by your customer.

How do you finance the loan?

If your customer is not paying the interest on the loan on the loan WHO is? You, of course! Whether you business has an overdraft or not your company has to finance the debt. If you have an overdraft it is shown in the increased bank charges you incur through having a higher overdraft. If you don’t have an overdraft it is shown in the lost investment potential as the money could have been used to generate greater profit for your company.

What effect does it have on your business?

We have already discussed the increased overdraft and loss of investment potential so surely there can’t be any other effects. WRONG. Delayed payment of your invoices for whatever reason also reduces your profit margin. You may be happy that one of your customers is paying you on 70 days when he should be paying you on 30 days. If that customer was to pay you on 50 days still well after your 30 day terms but an improvement of 20 days, then your company’s profitability on that customer’s invoices would improve by 19%.

Even worse!

Yes, that’s right, there is potentially worse. Your company could fail. The majority of companies fail not through lack of sales orders but through poor cash flow. Money going out of your company should at least match what is coming in. If it doesn’t you are losing money. You may have a lot of customers that owe you money, but until that money is in your bank those sales are not realised and will not be taken into account by your bank. They may even take a look at how long they have been unpaid and write them off as bad debts and refuse to loan any more money.

This is why Direct Cashflow Solutions is unique. Debt collection agencies want to collect your debt after terms. Collecting your debt after terms means that some or all of the above has already happened. Too Late!

By using Direct Cashflow Solutions you will prevent all of the above and as we all know: Prevention is better then the cure.

Our mission is to ensure that there is more money coming in than going out.

We want to ensure that you are not giving your customers an interest free loan. We want you to improve your profitability.

We want you to be free to develop the company of your dreams.