Tag Archive: Cashflow

1. Remember, remember businesses go bang all year, not just in November!

   November 13, 2019 2:22 pm Leave a Comment

    

   Lets Reflect

   The UK’s political and economic climate continues to be one of the toughest in recent history. With the UK’s economic growth running at the lowest in 9 years.

    

   As we know several big brands have been forced to close, with a steady stream of others following month after month. The ‘ripple effect of debt’ on smaller businesses is significant and felt across industries.

    

    

   November is a month of reflection and looking back so it felt right to give thought to 16k+ companies who went into insolvency during 2019. What can we learn to limit further losses ?

    

   Some Facts

   Recent research from Hitachi Capital Business Finance (HCBF) shows that late payments are affecting small business of all sizes across all industries:-

    

   – 75% of small businesses (10-49 employees) are dealing with late payment issues.

   – Whereas 50% of sole traders are force to deal with debtor issues.

    

   It is a fact that late payments are notoriously hindering the ability of businesses to progress – not to mention the precious time wasted chasing overdue payments.

    

   Imagine This Scenario.

   You won the order, provided a great service or product and sent your invoice as agreed but when it’s time for them to pay you, they appear to have fallen off the face of the earth. Your calls are never returned, your emails ignored. You have concerns and maybe even heard a whisper that the business is ‘struggling’ . You fear the worst for your business, but what can you do?

   • Have you already spent too much time on this one client and have other priorities to focus on. After all, investing your time in an invoice already raised is not going to increase the value of the invoice. Maybe now is the time to hand the debt over to a recovery agency like us to collect?

   • If you’re determined to press on yourself, then we’re still there to advise and guide you as to the best way forward. Why not benefit from our resource and techniques to aid in your recovery and diligence. You will soon be able to tell whether you’re going to be paid, or whether your debt may be lost.

    

   Useful Resources & Links We Advise.

   • Companies House – Search for information about the company & people.
   • Credit Reference Agencies – See what the financial status of the company is.
   • Websites & Social Media – Check the client’s own sites, look at reviews etc.

    

   If you have any questions or would like further information on our advice above or indeed simply want to discuss what can be done, please get in touch : Contact Details

    

   Your benefits from outsourcing to Corp & Comm are :

   • Unlock Cash
     Pass aged debts and late payments to us and improve your precious cash flow.
   • Reduce Costs
     Save the time your business spends chasing payment? What does that time translate to in cost, opportunity cost, bank charges etc?
   • Flexibility
     Outsourcing debt recovery or credit control to experts means you will have improved cashflow that can pay creditors or make investments to allow your business to thrive.

    

   Simply gives us a call 01535 654 594 or fill in our Contact Form and one of our advisors will be in touch soon to discuss your requirements with you.

    

    

2. Put the Ho Ho Ho in your Christmas Cash-Flow

   October 15, 2019 1:36 pm Leave a Comment

   

   We’re whispering it quietly but the festive  ‘C word’ is on the horizon.

   Yes indeed, Christmas is coming and love it or hate it, as a business you must be prepared for it.

   The invoices you raise now, will in most cases fall due at the end of November. This means that the monies you raise from October invoicing will be your ‘Christmas Cash-Flow’.

   December is notoriously a troublesome and expensive month.

   Bills and wages are not the same as in ‘normal months. Add seasonal factors such as Xmas bonuses, parties gifts etc and suddenly your expenditure is higher than usual.

    

   Couple this with the fact that most businesses close for a period over the holidays and you’re quickly faced with the perfect storm of having to fund an increased four-week expenditure period whilst perhaps only having a three-week working period to raise revenue.

    

   Suddenly the actions you take now become so much more important.

   As both clients and contacts of ourselves will know, there is no cast iron way of guaranteeing that an invoice won’t be paid late but there are ways that you can minimise that risk.

    

   1. Make sure that your invoice holds the correct written information.

   • List the customer’s information correctly. Make sure any description of goods/services provided is accurate. Ensure the price is as quoted and the invoice is dated correctly.

    

   2. List on the invoice the payment information the customer needs to pay you.

   • Make sure your complete bank details are on your invoices : bank name, sort code and account number. Include your payment terms and most importantly, the date for payment.

    

    

   3. In December, have a ledger to hand to see what invoices are owed…. and action it !

   • In most cases businesses will only be trading for three weeks in Dec. Be proactive with your ledger, don’t delay when an invoice is overdue. If the invoice is fair, it deserves to be paid.

    

    

   Help is to hand if needed

   If you don’t have a plan to action your debtors, or struggle to implement your processes, then don’t delay, use your peer support network and contact us for all the help, advice and guidance you’ll need to enjoy a stress free end to 2019.

    

   For more helpful hints to aid your credit control please review our other blogs.

    

   Merry Christmas Folks, have a good one. From all the team at Corp & Comm (01535) 65 45 94.