Inflation Tame but Economic Growth Expected to Moderate

This week Statistics Canada released the latest inflation rates for May reporting the latest rate dipped to 1.4 per cent, down from 1.8 per cent in April. While inflation isn’t a threat to the economy at this time, analysts are still predicting the Bank of Canada will go ahead and raise its key interest rate again in July.

Media outlets also reported Canadian retail sales took a hit in April with weak auto and clothing sales, down 2 per cent over all and almost wiping out the gains made in March.

Economists warn Canada’s domestic spending blitz in recent months may be losing steam and predict sales will drop off in the second half of this year. The low interest rates we’ve enjoyed during the recent credit crisis encouraged consumers to borrow money resulting in personal debt climbing to very high levels.

A hike in interest rates will certainly encourage consumers to curb their spending. With growth expected to moderate, interest rates heading higher and the economy expected to return to full capacity only next year, how will your business fare in the coming year?

At Veri-Cheque, Canada's leading Accounts Receivable Guarantor, we know your customers are at the heart of your business. Your accounts receivable represents the largest portion of your company's assets, which is most vulnerable to unexpected loss and business cycles.

There is a risk when you extend credit to your customers and place trust them to pay you for goods or services. Every day your largest asset – your accounts receivable - goes out the door. And, at anyone time, you may have thousands of dollars in receivables outstanding. Without protecting your company with credit insurance (accounts receivable insurance), you put your entire business at risk if you're not able to collect on outstanding invoices.

Veri-Cheque’s Account Receivables Protection Plan is the best defense for your company to stay viable over the long run. We’re here to help you maintain and grow your business now and into the future.

We advise our customers to take a systemic approach to getting paid on time and here are key business practices to ensure payment:

      Make your sale, deliver the goods or service and then promptly invoice with Net 30 day terms.

      Follow-up three weeks later with a service call to ensure customer satisfaction and deal with any issues your customer may have about his order prior to the due date of the invoice so there is enough time for you to resolve any issues. At the same time, review the invoice as reminder of the due date so there is no misunderstandings about payment. The customer will know you care and is more likely to pay on time.

      If the due date of the invoice has come and gone and still no payment, give your client a call within 10 days. Don’t let the situation get out of control where a month or two goes by. Be proactive and keep in touch with your client to follow-up on payment.

Feel free to give us a call to get more information about how we can help your business grow and prosper.

Ronald Renwick
President
Veri-Cheque Ltd.