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Dunforce wins La Poste’s competition to attend Web Summit 2016

Sponsored by La Poste, Dunforce will be present at the Web Summit 2016. What a great opportunity for us to exchange, partners, sell.

Because the Web Summit is the great mass of innovation. Once a year, more than 50,000 people, 7,000 companies gather to share ideas, project. The cream of Silicon Valley comes to meet the world … And after Dublin in 2015, this year it is a little further south, in Lisbon, Portugal where will meet the best of web companies.

La Poste, the French operator for mail, via its innovative structures, joined this important event. And decided to promote the best French start ups of the moment. It has selected 4 companies among 100 highly innovative, specialized on fintechs. To make the best choice, they were helped – in addition to the Postal Bank – by experts in the field, Paypal Partech, Axa Venture, BlackFin, Serena, 360 Capital …
If you’re at WebSummit this year, let’s meet. A little ping on #dunforce or contact@dunforce.io …







WHY START-UPS NEED TO PAY ATTENTION TO THEIR COLLECTION (IT’S ABOUT SURVIVING!)

More than one has already fallen in the battleground, unarmed, after a long process of collection that only slow down its expansion … What am I talking about? Of those startups that have unfortunately fallen into bankruptcy.




Let’s examine in the first place the case of Save, then we will go with Take Eat Easy, and afterward, we will see if ChicTypes will make a change of direction.

Let’s review the history of Save. This small English name of four letters must surely sound familiar, but either way, let’s introduce it: is a French company that was showing incredible numbers in less than 18 months. More specific? Sure. Save went from having 30 employees to 400 in 18 months and in this same time, it went from a monthly billing of 100,000 euros to start billing 100,000 euros … per day. It has more than 100 active sales points (or, corners) in five different countries.

Profit is an opinion, cash is a fact

Okay, those are excellent numbers, but more specifically, what was Save? Actually, Save is a company that provides repairing services for your smartphone and tablet in their repair corners. Oh, all in less than two hours. And apparently, this concept attracted investors: it got more than 15 million euros from several venture firms, some private investors like Xavier Niel, head of Free, also decided to join in.

An effective collection is often impossible when we are going through a strong growth process.

So,  how did this promising company went from such rapid growth to be in a state of suspension of payments? Its founder, Damien Morin, had to admit his biggest mistake: the accounting was perhaps a little too suspicious. Do not panic: being in a state of suspension of payments is not the same as filing bankruptcy. Its final report of 2016 indicates that during that year around 40 million euros were billed. Unfortunately, not all run with the same luck, for Take Eat Easy, they had to fill for bankruptcy, and for ChicTypes, the future will tell.

After reading this, you should consider one thing, an obvious truth: no matter the growth of a company, its billing or the money that could have been invested in it. What is needed above all of that is a bulletproof administration, which allows them to avoid not getting paid and above all, to allow the money constantly enter, achieve cash flow. A Credit Manager can be of great benefit for this type of mission.

Are you still here? Good. I’ll give you some tips that will help you better manage the finances of your business and minimize risk (can we talk about luck?), this way, you won’t end up like the companies we mentioned above.

The key to growth lies in liquidity

First, always remember to keep this little quote on the back of your head: “Profit is an opinion, cash is a fact.” To better understand this little phrase of 8 words, we will compare profits with cash.

Your profit is the direct benefit. It is money that will allow your company to cover all expenses that might result (staff costs, rent premises, raw materials, etc.) from the sales of your products or services of your company. When this number is positive, this means that you have won more money than you spent, right? The benefit is our profit, right? Well, no. This benefit is just a number. You cannot put in your pocket and spend it.

Of course, profit is very important. But it is not as important as cash, the real money we see in our bank account. If your company has a drop in their sales but has a significant amount of money in their account,they will survive. But if your business is “profitable” but doesn’t see many numbers in their account, welcome to the world of collections.

Thus we have seen the importance of preferring cash over profit, but how do we secure the cash if customers are slow payers?




Our simple tips will make your wishes come true

These are some small but effective tips that can be helpful. The first and most important to be effective in this task is to find your own management method. In order to track the invoices that are sent and received, be sure to take into account all sales. Accounting is more than important, it should never be left behind. Keeping a good accounting will allow you to detect more easily the reasons why money is having problems to enter. Is my service not good enough? Is it simply an organization problem?

Do not think notifying your client is annoying

In every contact, you draft you must very specific with the terms of delivery and the payment methods accepted. Another rule that may seem basic, but that needs to be reminded is to make every invoice as clear and understandable as possible, don’t forget to include your contact information. If you haven’t received your payment, the best way to solve it is to simply give a call to your client. Once you place that call, it will be harder for him to avoid the payment and is much faster than having to send an invoice by mail. If the tried this and still haven’t received your payment, always try to notify, notify and notify. Do not think that such reminders can annoy your customer, you provided a service, they have to pay for it and they certainly know it. If after all of this, the customer still hasn’t made the payment, you have, ultimately, of course, the possibility of hiring a collection agency. This alternative is very delicate and should be only considered when there is a true risk that the customer won’t pay.

Finally, another way to make the money arrive faster is offering a discount to customers for early payment. Companies typically offer between 1-3% discount for payments received between one and two weeks after billing.

And finally, of course, use Dunforce. This is a very simple tool that will centralize all your bills and that it will take care of the collection like reminders, receipts, team notifications – finance or sales in the event of excessive delays-. It is some sort of CRM for your invoices. It is something cruicial for your business.

Let’s talk!







 

 

Late Payments are a Nightmare for Freelancers

An Invoice is Paid too Late!

Are you constantly faced with payment delays by customers? Especially as a freelancer? Well rest assured, you are not alone in this situation. Nearly 50% of freelancers and independent workers consistently report having problems receiving their payments within the agreed upon time. This issue, which also disproportionately affects SME’s, is becoming the norm and as statistics show, the trend seems to be getting progressively worse over the past few years.

Additionally, no sector seems to be left untouched by delays and non-payments. From construction to marketing, PR and the creative industries, all types of independent professionals and companies are faced with this issue, which in turn represents large losses to the greater economy. A survey conducted in the United States, using data collected from nearly 5,000 freelancers, reports that the average delay on payments against outstanding invoices is 52 Days! Such payment delays have catastrophic consequences for the economy and corporate activity. According to the European Payments Report 2015, 40% of respondents said that the inability of their customers to pay on time seriously hampers their growth and causes serious cash flow problems.



The Consequences for your Business

Little by little, this trend of late payments is killing companies. Below are the three biggest threats to your business if invoices are not settled in time:

  • Decreased Productivity: spending time tracking invoices and chasing clients for a timely payment should not be the primary activity for freelancers and small businesses. It takes time, effort and energy….In short it detracts from your primary economic activity and your overall productivity suffers
  • Cash Flow Problems: late payments result in real, serious cash flow problems that eventually push freelancers & SME’s into a vicious cycle of debt. How are you supposed to pay your bills and suppliers when your customers are not settling invoices? This has detrimental consequences for the management of any business, specially for independents and SMEs who do not have large cash reserves to fall back on.
  • Deteriorating Customer Relationships: following up with clients for outstanding payments can often be a delicate task that requires a lot of tact. Of course this is easier said than done and managing the different pressures of works means that things do not always go as planned. In these cases it is usually your relationship with the client that is the first to suffer…

Therefore, as you can see, the risk of bankruptcy significantly increases as payments are delayed. As Altares confirms in it’s study, a company is six times more likely to fail if payments are delayed past 30 days…