The managing Director feels they must ______ . [br] They must reduce payment tim

MD: There’s no doubt we’ve got to tighten up on financial control. Peter, you’re in charge of credit control. What do you suggest?
FC: Well, rye been looking at our payment terms, in other words how long we have to wait for payment, we must reduce the average delay in payment. It’s nearly 45 days now from the date we send out the invoice. We’ve got to get it down to near 30 days. It’s not easy. The Sales people always argue it is better to wait for payment rather than lose a customer, but I think we can tighten up on reminders, statements and so on.
MD: What about our payments to suppliers?
FC: Well, that’s more difficult. We are a small firm dealing with large suppliers. They don’t have to help us. Still, maybe one or two of our older suppliers could give us better payment terms.
MD: Right, let’s look at some more general cost cutting measures we can take. I’m interested in support services such as training and personnel development.
PM: Look, I must say something here. We simply mustn’t cut these services. They are our long term investment in people.
MD: Maybe, but we’ve got to reduce costs some- how. We can’t cut in the production area. I...
PM: True, but our training budget is already very limited. Most of the training programmes are long term.
MD: I’m not saying we have to stop any existing programmes, but perhaps we should look carefully at future training courses.
PM: Well, I can let you have details of what we plan. I think you’ll see that they are all worth- while investments.
MD: I’m sure. Anyway, let me have the programme and we’ll discuss it later. We’ll have to stop now. I’ve got another meeting at 2.
PM: I must go too. I’ve got a meeting straight away.