It's the Sprats, Not the Mackerels, That Really Matter

There's always been a tendency to concentrate on collecting big debts, rather than small ones - and it's always been a mistake.

The real question is, you see: how many sprats equal a mackerel?

Quite often, there are enough neglected shoals of sprats lying about on a ledger to equal more than one mackerel - and the fact is that sprats are generally easier to catch.

Small debtors tend to respond more quickly and more positively to letters and telephone calls than larger companies. They are less demanding; less likely to come back with time-consuming price queries, or requests for discounts or deductions - and if they have a problem they are much more likely to say so. And they are a whole lot more likely to agree to - and stick to! - reasonable re-payment plans!

Money from small debtors tends to come in in dribs and drabs - but those dribs and drabs can improve your cash-flow steadily, and on an on-going basis, if you work at getting that money in.

Things are improving - albeit very slowly - for everyone. So now is a fairly good time to catch your sprats - particularly if, having neglected them, you have given them a pleasant respite and some time to consolidate, catch up, and get back on their feet.

You shouldn't, of course, forget your mackerels - but you shouldn't give them all of your attention to the exclusion of everything else, either. Obviously every Bank Manager loves a large deposit of funds - but small regular deposits that accrue over a period of time paint a picture of stability much dearer to their careful, fearful, Goblin hearts.

Look after your pence. Your bank will appreciate your pounds. But not, I fear, by very much at the moment...