Let’s make no bones about it, the next few months are a period of uncertainty for all of us.
Brexit is finally happening! Judging by the noises coming out of parliament, the deal is not going to be to everybody’s taste.
Now more than ever is the time for you to know who you are dealing with. Also just as importantly who they are dealing with ?
On face value, you may not have a direct dealing with an import or export company, or indeed that of a High Street retailer but it is imperative that you start to trace the business path.
Christmas gives everybody a great opportunity to speak with your customers. Whilst you are speaking to them to wish them well for the festive season, ask them the questions that will give you the information you need to make some measured judgements.
“I know a little bit about your business but please tell me briefly, who are your major customers,
what type of clients are you looking to attract and are there any particular industries ?”
“We were having a discussion here the other day about whether Brexit will affect us, do you think it
will affect your business in any way ?”
“What’s your thoughts on the current state of the retail industry, do you think it will
have any bearing on businesses like your and ours ?”
You’re trying to ascertain whether at some point in the future, your customers will be affected by the uncertainty to come.
- Will Brexit impact their costs or margins ?
- Will the reduction in High Street trade reduce their revenues and cash flow ?
Remember, 8 times out of 10, a debtor is only a debtor by circumstance. Something has impacted upon their money chain. A major customer has gone bust or a supplier is delaying goods for sale. This impacts on their revenue and cash flow. Often your customer has no other choice than to pass this pain further down the money chain. Including delaying payments to their creditors whilst they resolve things.
The more informed you are about your client’s exposure and risks, the more able you are to identify changes in trading patterns and payment schedules. This will then enable you to react faster, when taking actions to ensure your cash flow is not the one that is affected.
Christmas may well be the season of good will but it must also be the season of good practice.
We are here to help. So if you would like to get our advice or use our services please get in touch>>>