The question I dread being asked
This week a director asked me one of the worst questions I ever get.
One of his biggest clients had just gone into liquidation. Completely out of the blue. Owing him a lot of money. He wanted to know what chance he had of getting any of it back.
I always have to hold back when I hear that question.
Because the honest answer is negligible. If you get anything at all it will be pennies in the pound and you will be waiting well over a year to find out.
But that is not what I am holding back from saying.
What I am holding back from saying is that this could have been avoided. Because it almost always could.
Here is what I have seen across 40 years and 3,000 directors. A regular client. Always pays. Good relationship. Then one day they ring you, friendly as ever, and ask if they can have an extra couple of weeks. Maybe a month.
And you say yes. Of course you do. You have known them for years. You are a decent person. You want to help.
But here is the truth of that moment.
They are not asking you for a favour. They are asking you for business finance. They cannot get it anywhere else so they are coming to you, the person least likely to say no, because you value the relationship and you do not want to lose them as a client or as a friend.
You answer as a good person, which you are.
And then months later they go down. And they cannot even look you in the eye.
If any of your clients are giving you cause for concern right now, pick up the phone. No charge. No obligation. I have been doing this a long time. Let me take a look.