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No Banks, No Credit, Just Better Business…

Imagine the World without the banks. Spend 2 minutes thinking about that.

Now spend 2 minutes thinking about the World without Credit.

What conclusion did you come to?

Let’s see if it is the same as ours.

No Banks. More Trust

When I say “No Banks” I mean, the investment type. You know, the ones where they bet money against the market, against companies, for companies, etc. The ones that can make £1Bn a month but have nothing to show for it because it isn’t real. That kind. We’ll, the way that I see it is that they are the ones causing worldwide mischief. They invent ‘new’ ways of creating more virtual money. And most money is now virtual. When was the last time withdrew all of their monthly salary? In actual fact, it sounds kind of ‘wrong’ to do that. It sounds suspicious, sneaky, risky and that you are somehow trying to beat a system, even though it is your money. It sounds dangerous. What if you were robbed or burgled? How often does that happen though?

Banks are required but are required for ‘proper’ banking, you know, the ones where you can walk into and they look after your money (somehow). Your money gets paid into it and you can pay others from it. Nice and simple. Loans are small and low risk, interest rates are stable and you know your money is safe because the bank is truly working in your best interests. ‘Real’ bank managers are there to help.

So, without the investment ‘risky’ type banks, things seem a little better. Real banks look after money and won’t squander it, the virtual money is safe.

No Credit. Better Cash Flow

Stop using credit terms. If your customer can’t pay now, let them wait for their goods. Does that sound crazy? Or is it more crazy to offer credit terms of 31 days plus for no reason? Shouldn’t all transactions have 2 sides? A product or service in exchange for money (or something)? Is it actually a transaction if there is a time period between the 2 movements? Or is that just free time with the service or products? A prolonged hire period, maybe. Several of our clients have mentioned their problematic customers who never pay within agreed terms – we have started advising them to reduce the credit terms to 7 days or immediate payment. Once the shock wore off and they followed our advice informing their customers of the reason for the change, their customers were happy to pay inline with the new terms. Interestingly some of their customers followed suit with their customers and adopted the same strategy – everyone wins!

Improve your cash flow the same way.

So, where do we go? Ideally we need to eradicate any ‘financial’ institution that doesn’t operate in a logical way and reduce credit terms so that companies cash flows are better. Easier said than done, we think. But we will keep on pushing…

1dash1 provides Business consultancy that may seem strange but you can’t beat logic. Proven and Trusted.