Tag Archive: Cash flow

1. No holiday for your Cash Flow

   June 12, 2019 11:02 am Leave a Comment

   

    

   Ah Summer Time…. A time for unnecessary sun cream purchases, lonely garden furniture and barbeques in the rain.

    

   However it’s also holiday season and just as business owners need to plan their own holidays, they also need to plan for the effect holidays can have. After all, you don’t want to be giving your cash flow a holiday too do you ?

    

   Wages still need to be processed and paid. Bills and invoices still require payment. Therefore you need ‘your own’ invoices settled promptly and accurately too, in order to keep the cash flow moving and ultimately allowing you to have a stress free, well deserved holiday.

    

   If you’re already a Corporate and Commercial credit control customer, then you can just kick back and relax, knowing that you have a dedicated credit controller to be on top of it all for you.

    

   However if you are short on time, resource or desire, you may need these tips:

   3 Easy Steps to Avoid Cash Flow Stress when on holiday.

    

   1. Remove any potential payment delays. If there’s a query that you’ve promised to resolve, get it done. Invoices are not going to be paid whilst an issue remains. Don’t give a debtor an excuse for delaying payment until you return by saying… ‘you were meant to sort that for me’.

    

   2. Invoice promptly and correctly. If there’s an invoice that can be raised, raise it. Even if it’s for part of a project, get the invoice raised. It’s better to have some monies coming in whilst you’re away than none at all.

    

   3. Plan for payment. Send an email with the invoices that fall due in your absence to your customers. Something along the lines of…. ‘Dear John, just a quick note to supply you with your invoice that will fall due on the 16th August. I’m away for a few days beforehand so just felt it prudent to get this across to you just in case. My accounts team are on hand should you wish to discuss this further, otherwise we’ll keep an eye out for your payment on the day’.

    

   In short, treat your accounts as you’re treating your impending holiday. Make a plan, prepare and execute. Taking these simple steps before you go can guarantee a good night’s rest whilst you’re away. Safe in the knowledge that you’ve done what you can to maximise the return of your monies.

   How can we help?

    

2. New Year’s Business Resolution…. Always Keep an Eye on my Exposure and Risk !

   December 12, 2018 12:09 pm Leave a Comment

    

   The New Year is always full of promise. The challenge is whether we can continue to stick to our well intentioned promises.

    

   We often make promises to alter ourselves, our lifestyles, our environment but how often do we promise to alter the way we look at our business

   

   Sadly running a successful business can be a drain on your time. Often the clamour to service clients and fulfil orders takes over the opportunity to really look at your business. Including analysing your exposure and your risk.

    

   We all know that there is ‘no better time to start something new than the present’ but the New Year also brings us a ready-made opportunity for change.

    

    

   Take a little time during the holiday period to study or analyse your customers payment habits. Is there a particular customer who has taken longer and longer to pay ?

    

   If so, make a note on your accounts system to flag them up as a concern. Then make them your priority when you’re conducting your credit control, contact them first. The quicker you action a concern, the speedier you are to get paid.

    

   Is there a particular customer who has consistently ordered more goods than your suggested credit limit ? Now is the time to conduct some credit and diligence checks on that customer. Make sure that they are worthy of the extended credit limit that you are giving them ?

    

   If they are, then write to them to extend their credit limit. Your customer will appreciate the vote of confidence and may even provide further orders. If they are not worthy of additional credit, flag them up on your system and every time they go past their limit, contact them immediately and ask them for payment to bring them back in line.

    

   New year is the time for new starts and new beginnings, so let’s all start putting best practice into our businesses.

    

   If we can be of help with recovering outstanding debts or remove the time you spend chasing payment by taking on your credit control please get in touch>>>

    

   Happy New Year !

3. Can a Leopard really Change it’s Spots?

   September 19, 2018 3:42 pm Leave a Comment

    

   Large company failures…. They make the news on an almost weekly basis.

    

   Big high street brands such as Toys R Us and House of Fraser have suffered high profile insolvencies this year and others like Debenhams and Marks & Spencer have been forced into an aggressive program of store closures.

    

   In fact The Centre for Retail Research confirms that 41 high street names have entered insolvency so far in 2018… and it won’t end there.

    

   Now we realise that not everybody deals directly with these big high street brands but the likelihood is the chain of supply will work it’s way to your clients and suppliers in some way and will they be forced to pass on their pain to some degree ?

    

   The question is, what can you do to avoid being a victim in these trying times.

    

   The answer is simple, keep doing your diligence.

    

   Regular readers will know that we often speak about employing good checking processes and systems into your credit control procedures. In these trying times, let’s quickly revisit them.

    

   1. Conduct REGULAR credit checks on your client and suppliers.

   • Check for any adverse profit warnings, reduced credit scores and credit limits. All of these are indicators that the reference agencies and regulators are concerned.

    

   2. Reference Companies House and other business databases.

   • Check your existing and new information with the databases. Have new businesses been set up by the same directors ? Does this point to an imminent change in the business ?

    

   3. Do your diligence on the internet.

   • The internet is a great source of news and notices. If there are rumblings of troubles and insolvencies on the horizon, it’s better to be forewarned so you can act first, not last.

    

   Now we’re not saying that by you conducting the correct diligence, the rate of company insolvencies will fall, far from it.

    

   What we are saying is that in these days of companies closing, entering insolvency and then ‘pheonix-ing’ from the flames overnight into another business, you are better forewarned.

    

   For 2018 has definitely shown us that your leopard can indeed change it’s spots.

    

   If you would like to learn more about the diligence, credit control processes and methods to improve overall cash flow in your business check out our other News Blogs or attend our Seminar, that is taking place as part of Leeds Biz Week.