Your Business is not an interest-free credit facility!

Hi there,

Welcome to the very first edition of The Profit Pilot! In this newsletter, we’re diving straight into a topic that keeps small business owners up at night: timely payments. Spoiler alert—your business isn’t an interest-free credit facility, and we’re here to help you keep it that way.

Repeat after us: “My business is not an interest-free credit facility!”

Let’s paint a picture: You’re working with a big client who seems to believe they can take a leisurely 60 days to pay up. Meanwhile, you’re footing the bill for supplies, payroll, and overhead, all for a project that’s long done and dusted. Sound familiar?

One of our clients recently found themselves in this exact situation, and trust us, it’s more common than you might think. So here’s the burning question: Can you imagine waiting 60 days to pay your employees or suppliers? They’d be out the door in a heartbeat, right?

So, What’s the Solution?

If you’re tired of the delayed payments cycle, let’s make sure you’re equipped with some solid tools:

1. Ironclad Contracts
   Get legally enforceable contracts that define exactly what happens when payments are late. Set your terms clearly, and don’t be afraid to enforce them.

2. Late Payment Fees
   Think about it—why should your business bear the cost of delayed payments? Late fees are there for a reason. Use them.

3. Be Proactive
   Don’t be shy about following up. An overdue payment isn’t just a number on a ledger; it’s your hard-earned money, so keep those clients accountable.

Learn more about using these simple payment tips to improve your cash flow here.

Real Talk from Business Owners Like You

A fellow business owner recently shared a story about dealing with clients who insist on long payment terms, despite being large enough to afford timely payments. The response? “If I tried to do the same to my employees, they wouldn’t show up to work!” Truer words have never been spoken.

We’re not asking for special treatment—just a sustainable payment system that keeps small businesses afloat.

As small business owners, standing up for ourselves isn’t just an option; it’s essential for survival. Let’s make 60-day terms and interest-free credit a thing of the past.

Until then, keep flying high and prioritizing the health of your business.

Warmly,
Doyin Ogunbajo, CPA
ASO Financial & The Profit Pilot Team