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Practice Reading: Fill in The Blanks (Drag & Drop) ID: #31684 Debtor
Instructions
* Drag the correct answer into all target fields
There  isn't  a  financial  director  around  who  wouldn't  like  to  accelerate  cash  flow  by    debtor  days-  in  other  words,  get  customers  to    faster.  In  Europe's  top  1,000  quoted  companies,  nearly  one-quarter  of  all  invoices  are  unpaid    in  time,  according  to  recent  research  carried  out  by  the  ASF  organisation.  This  means  they  are  sitting  on  a  total  of  274  billion  overdue  debt.  Most  of  this  is    by  poor  collection  practices.  According  to  Jan  Porter,  ASF's  Managing  Director,  'You  can  set  up  all  the  systems  you  want,  you  can  insist  on  watertight  contracts  and  payment  terms,  the  government  can  even  introduce  late  payment  legislation,  but  there  are  always  some  debtors  who  fail  to  pay  on  time.  Once  payment  is  overdue,  your  first  step  is  to  talk  to  your  debtor.  You  should  let  them  know  the  payment  is  late  and  try  to  find  out  if  there  is  a  dispute  about  the  work,  or  if  your  debtor  has  financial  problems.  This  is  OK,  but  Tim  Vainio,  a  chartered  accountant,  believes  that  too  many  companies  are  afraid  of  losing  a  relationship,  and  that,  before    any  action,  the  focus  should  be  on  recovering  as  much  money  as  possible,  rather  than  on  preserving  a  relationship.'

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