The festive fob off

Where does the phrase fob off come from?

Fob off comes from the Middle English word fobben, most probably derived from the German foppen, which means to fool, trick or deceive. The term fob off reached its peak of popularity in the mid-1700s, but surprisingly, has made a huge comeback in the last fifty years.

However, particularly in Australia we tend to find it makes a huge comeback around the Christmas and New Year festive period, especially with your debtors.

The Merriam-Webster dictionary provides the definition of this verb as:

1. To put off with a trick, excuse or inferior substitute; or
2. To pass off or offer something spurious as genuine; or
3. To put off or to put aside until later.

So, what is the festive fob off?

The Christmas and New Year festive period in Australia is an extended one as it also coincides with the long summer school vacation period. Many businesses close for a short or sometimes lengthy period. Others run with a skeleton staff but encourage most of their staff to take extended breaks over this period as the business is not as busy.

The festive period also coincides with the best weather of the year and most people will take advantage by taking holidays with their families.

The period can be exceedingly difficult on the cash flow of a business, as there are lulls in trading and turnover, but there is also a lull in the invoices you have already issued being paid on time. This is due to the festive fob off.

What are some examples of the festive fob off?

Over the years (more than 25 years in this industry) we have heard all the excuses and fob offs for not paying debts. Some you would not believe (but that is for a different article). However, during the festive period they become festive fob off specific. Here are a few:

1. Our office is closed for six weeks, but Merry Christmas
2. Our director is on holiday until February and she needs to authorise all payments
3. Our accounts department is on skeletal staffing for 4 weeks
4. We do not do any pay runs in January due cashflow reduction, but Happy New Year
5. Our bookkeeper has gone to Hawaii for 4 weeks
6. There is no one in the office today due to the holidays
7. We do not reopen until after Australia Day, there is just no point
8. Santa did not come this year

You might be chasing an invoice that has been overdue for 2,3, 6 or even 12 months. You will still get the festive fob off.

How to beat the festive fob off.

The trick is to have as much of your debtor ledger collected and in your bank account before the middle of December. If the invoice is not paid by the middle of December the chances are it is not getting paid until February. If it doesn’t get paid until February it becomes more overdue and the chances of being paid at all reduce significantly.

Therefore, November and early December is the period that you need to work hard on reducing your debtor ledger to its absolute minimum to ensure you go into the festive period with as few debts as possible outstanding or overdue. Set your strategy the first week in November to have the maximum amount of your debtor ledger paid by 15 December.

That way, you can enjoy the festive period too.

Merry Christmas and Happy New Year to all our clients.