A lot of things have changed but a lot of things remain true. In this new environment there is still a solid path to step around the pitfalls of credit risk.
Whether you’re a start-up or an established media agency, and no matter how disciplined you are with credit management, customers can sometimes fail to pay. Large sums of overdue money owed at any given time, makes you vulnerable.
Firstly, their could be costly stress on cash flow and reduce profitability. Having to run an overdraft or needing to invest additional capital at a low return, to pay media suppliers when due. Then there is the administrative cost of running an accounts receivable team, credit assessment, invoicing , statements and collections work as well as those HR costs. Further, additional resources are necessary to handle the accounts payable. Collation and verification of incoming media supplier invoicing and payment processing. Finally, bad debts happen, and can be devastating to your business.
What would be the consequences your largest clients failing to pay you? A customer’s ability to pay can be affected by many factors at any time. Unforeseen events such as the current impact on our economy caused by the Covid-19 pandemic are a timely reminder of why a business needs protection against increased trade credit risk.
Partnering with MPS gives you the confidence to build your business by taking both the credit risk, the costs and the effort out of your hands, and into ours. We will take care of your debtor and creditor management allowing you to focus on your core business. Invest your time and resources more productively into client relations, concept, creative, campaigns, performance measurement and strategy review. MPS can also handle your SEO, SEM, social and other service fees, creative and production charges, wether in house or outsourced. Your client receives everything on the one invoice making their life easier as well. On top of that, your cash flow becomes totally predictable with all revenues received on time.
Contact MPS to see how we can help protect your agency as well as make it more profitable.
