Qualitaly_105

JUN. JUL 2018 XI in managing a restaurant or an establishment, starting with the purchase of food.” What are the main problems you encounter and how do you intervene? Unpaid invoices, in any activity, always cause large hiccups, such as the complexity and the reduction of cash flow. We intervene as soon as possible by reducing the monthly credit line or by delivering the goods with cash on delivery. We never fail to provide the local agency with a statement of account, so that it can inform the client of the overdue amount; then, if the situation continues for a long time, and even the credit management office fails to succeed, the case is passed on to the lawyer. FROM THE LACK OF CUSTOMERS TO THE EXTERNAL PROBLEMS Giuseppe Botti, owner of the Ligurian Botti Catering, active from the area of Savona to Cannes where the restaurant is a “mixture” of Italian and French style. “First we activate the payment upon delivery system! Our drivers have been equipped with pos, so you can also pay by credit card or ATM, or cash. We apply this system to a good 20% of our customers... and let’s say that signifies a security. These customers are joined by another 60%, the hard core, the historical restaurants with which we have been working for years, from which we are sure to receive the balance within 40-45 days. For the rest of the market, every now and then, some risk must be taken, but always monitoring through appropriate systems: we are faced with “chronic late-payers”, those who drag payments even beyond 90-100 days. Are there any external factors beyond the customer’s choice? In practice, are there situations in which the customer, while willing to pay, has no opportunity? There are clear examples on the agenda, such as when activities are closed for short or long periods due to complications related to permits, practicability, the structure itself because it requires work or vetoes from the local health authorities. So, in these situations, payments stop immediately... if the venue closes it has no customer flow and, as a result, revenue is blocked. SECURITY: ALWAYS MONITOR CUSTOMER PERFORMANCE And if many people in Italy share the same situation, the picture is similar abroad. Danilo Buratti, owner of Buratti GmbH in Vienna, comments on the problem, stressing that, in all kinds of activities, you have to deal with debts and collections. “We have all had the experience of a customer who does not pay, but we also know that entrepreneurial risk is high and the loss of profit must be part of what can be called calculable risk. There is certainly no universally valid, suitable and effective system for all bad payers but, as Buratti points out, “good precautions can be taken to help keep the backlog at a controllable level. We must also be able to distinguish between non-payment in good or bad faith: if we are in the latter case, it means that there has also been an error of assessment by the company on the creditworthiness of the customer. And if in the easiest cases, just a phone call or a visit with a reminder from the company, in more complex situations Buratti uses a Start Up of a 4-step modular system of e-mail messages: a simple reminder, a reminder of the reminder, notification of a possible legal action and confirmation of the start of the legal procedure. From this stage on, each communication is made through the appointed lawyer. THE CASH ON DELIVERY METHOD An eye on the other side of the ocean to discover that everything happens with cash on delivery, payment on delivery or bank cheque, with a margin of 10 days or 30, but even here, with confirmation from Maurizio Di Benigno, President of International Gourmet Foods, delays can reach 50 days. “For those who do not pay, legal issues arise, the time taken is lengthy and does not always produce positive results. In some cases, there are also difficulties with trade with Italy, between slowdowns with goods, distances and bureaucratic quibbles. Belonging to a group like CIC, again, makes the difference: a direct comparison with the Italian market helps and gives a clearer view on what to do and how to deal with the complications related to Ho.Re.Ca. on the other side of the world. ______________________________ BOX BANKING ISSUE? There are many factors that can block the deadlines of invoices, but attention must also be drawn to an issue that, for some time, has aroused some reflection. Especially in the last 10 years, bank exposures to new business have been reduced or eliminated. Therefore, at the time when the supplier requested credit recovery, in most cases the premises themselves drew on the bank credit line to pay off the debt. In this sector, among the most requested and granted loans, the unsecured financing; it is a financing like all the others, but with a fundamental aspect: the bank does not require the presence of a guarantor and in exchange for the disbursement of the loan only requires the signature of the applicant. However, the applicant will have to demonstrate a certain pre-existing solidity in terms of finance and management. ______________________________