How to Get Others to Pay Up

It’s old news now that many businesses, feeling the recessionary pinch, have been delaying payments to their suppliers. In boom times that might not create a crisis, but until the downturn ends, cash flow is probably a paramount concern. The following tips should help you get the money you’re owed.

Invoice Early
If you drag your feet on invoicing, you essentially keep cash from coming in. Plus, the longer it takes to get paid, the less likely you are to get paid. Stay on top of your accounts receivable, and send bills out promptly to get paid earlier and show that you are paying attention to outstanding balances.

Invoice Often
If you bill weekly instead of monthly, you won’t be waiting until the end of the month to send out invoices—and can get paid faster. If weekly is too much to handle, try biweekly instead…

Screwed: 240 at Southa Africa’s Mondi

A daily review of the employment fallout around the country and the world.

Today’s Partial Total: 1,372

In South Africa, 240 Mondi employees are in danger of losing their jobs… Colonial Bank is laying off 136 employees across five states, Alabama, Georgia, Florida, Texas, and Nevada… Comair plans to furlough 100 pilots begining in September… Legal firm DLA Piper has cut 21 associates and 100 staff… Motorola will be laying off another 75 employees from its mobile phone division…

Recession Briefing 7.9

What you need to know today to survive and thrive in the recession.

“Our first stimulus bill … was sort of like taking half a tablet of Viagra and having also a bunch of candy mixed in,” said Warren Buffett, backing the idea of another stimulus package. (ABC News)

While parents may scrimp on their own clothing allowances during the recession, they won’t on their baby’s, making basic baby apparel one of the most defensive discretionary consumer categories in the economic downturn. (Wall Street Journal)

The free and cheap daytime activities at Seattle’s Recession Camp are designed to bring summer camp-style socializing to unemployed adults. (KOMO News)

In this climate it isn’t difficult to imagine that some museums are looking to the works on their walls (or more likely in the their collection vaults) as a possible solution to to their financial problems. Should they? (Chicago Now)…

The New Debt Collectors

While many of us would sooner forget the past year or so, a few history buffs out there have started hunting for recession souvenirs. A top prize among this group are the IOUs issued by California’s cash-strapped Gubernator Arnold Schwarzenegger last week.

Like Depression-era stock certificates, which were worthless in their day and could now fetch a bundle on Antiques Road Show, these collectors are hoping the state warrants issued in lieu of checks will someday have real value — if only sentimental.

“I figure it would be an interesting thing to have around when my grandchildren are fighting over my stuff after I’m dead and gone,” one poster wrote in a recent Craigslist ad offering twice the face value for a California IOU, up to $100…

Laid-Off Workers’ Call of Duty

Curious as to what the legions of laid off workers around the country are doing with all their free time? Playing video games, apparently.

A new study released this week by the Nielsen Company, shows that video game enthusiasts have spent more hours playing since the recession began than ever before. They’re trying to cut back on gaming expenses by renting titles or buying used rather than spending $60 or more for a new game.

So what does all this mean? Well for starters, it looks like the recession hasn’t lessened the amount of playing time gamers are spending in front of their consoles, as some gaming executives had previously worried. More than that, thought, it shows that people don’t mind spending on video games even when their budgets are tight—and may oftentimes be spending even more than they were previously—so long as they feel like they’re getting a good value for their money…

Why HENRY Can’t Get a House

There’s a donut hole in the real estate, and it’s about $2 million wide.

For a story I recently wrote for CNBC.com, I talked to real estate brokers and experts around the country about the future of the luxury housing market. (Read Luxury Homes Go Begging.)

The upshot: If you have gobs and gobs of money, as usual, you’re fine. And the under-$1 million segment is starting to do better. Prices have come down substantially and buyers can get loans, because Fannie Mae and Freddie Mac are still guaranteeing and securitizing mortgages (bundling them together and selling them). But that only applies to loans under a certain amount—$729,000 in the most expensive parts of the country.

The challenge is if you’re a HENRY, says Peter Grabel, a private mortgage banker with Luxury Mortgage. That stands for High Earner, Not Rich Yet…

Screwed: 2,600 in Illinois

A daily review of the employment fallout around the country and the world.

Today’s partial total: 4,294

The state of Illinois will hand out 2,600 pink slips. … About 800 workers for the state of Pennsylvania will be laid off. … In Austria, air line Austrian Arrows will lay off 400 employees. … In British Columbia, 270 state workers in forestry and environment will lose their jobs. … Communications equipment maker Tellabs will let go 150 more employees, on top of the 280 let go last fall. … Motorola will let go 74 employees at an Illinois location. …

Recession Briefing: 7.8

What you need to know today to survive and thrive in the recession.

Many of America’s high-end wineries are reeling from the economic downturn, as even wealthy drinkers slash spending on fine wines. (Wall Street Journal)

The recession is increasing the number of deaths from suicide, murder and heart attacks — but cutting the number of people killed in road accidents. (Financial Times)

The weak economy and a limp housing market have meant that many more people in this ordinarily footloose nation are staying put, unable to sell their homes, find a job, or just too uncertain about what the future may hold. (MSNBC)

The Recession Will End… Wait, It Already Did

Says who: Christopher Rupkey, the New York-based chief financial economist at Bank of Tokyo-Mitsubishi UFJ

“Consumers and businesses have postponed purchases for six months, the population is still growing about 1.2% per year, and if the unemployment rate is close to peaking, then growth may be firmer than expected in the second half of 2009.” [Rupkey] points to a series that in the past has proven a remarkably good indicator of business cycle troughs: weekly claims for unemployment benefits, [which] … peaked in the week of March 28. (via WSJ)

Why it might be crap: Sounds a little like the aftermath of 9/11, no? “I encourage you all to go shopping more,” George W. Bush said in 2001. Looking at the indicators themselves, there’s disagreement over when Americans will return to the malls in force, or when housing starts will improve, or even whether unemployment has bottomed out — considering how much of a surprise last month’s number was, and the fact that many are predicting the rate will move comfortably into the double-digits…

Signs of the Recession: We Don’t Need No Stinkin’ TARP Money!

In the Gem State, they’re proud not to be using billions in taxpayer dollars to fix their financial bunglings. What a concept. A couple of weeks ago, Tim Oren spotted this ad in Pocatello, Idaho, and posted it on his Due Diligence blog…