Stop Financing Your Customers’ Operations

I wanted to take a moment and thank you for joining the CFC newsletter! If you’re receiving today’s email, it’s because you are a newer subscriber to my newsletter over the past month. So, thank you and welcome!

Wanted to check in and make sure if there’s something specific that’s on your mind, a struggle you’re facing with work/team/customers/etc., or you are a veteran business owner and need a second set of eyes to please reach out to me. I’m looking to grow my online community (via Google Spaces) and would love to have you come check that out.

Today’s topic is going to be discussing why collecting at terms matters and how if you don’t it’s a cost to your business. Let’s jump into that and make sure you are taking control in this area of your business today.

It might not seem like a big deal when a customer pays a few days—or weeks—past due. After all, the money eventually comes in, right?

But here’s the truth: when you don’t collect at terms, your business absorbs the cost.

Every late payment requires follow-up. That means your team is spending extra time sending emails, making calls, and tracking down answers—all time that could be spent on revenue-driving tasks. The longer it takes to collect, the more admin hours pile up. And that labor? It’s not free.

Even more important, you're essentially financing your customer’s operations when they delay payment. They’ve received your product or service. You’ve paid your team, your suppliers, your rent and now you're left waiting, with cash stuck in limbo.

This creates unnecessary pressure on your own working capital. You might be forced to dip into reserves, delay purchases, or stretch out payments on your end just to compensate for someone else's delay. It’s not an effective way to run business.

Here's what collecting at terms really means for your business:

• Fewer admin hours spent chasing payments

• Better cash flow planning and predictability

• Lower financial risk and stress

• Stronger boundaries that set expectations for future deals

Bottom line: honoring terms isn’t just about courtesy it’s about keeping your business healthy and the more you normalize prompt payments, the more efficient and profitable you become.

Look over the free collections guide I sent for a way to tackle this.

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Contact me if you’d like to network or partner together. I’d love to chat with you more about the services I offer on the side through Guernsey Consulting. If you do not know, I work full time in Treasury Management and do consulting on the side. Would love to chat or network with you about it.

Some of those services are listed below that we can help you with!