It is easy for credit procedures to get a bit slack at certain points during the year. Whenever you have a quiet period , here are some tips to prevent cash flow problems:
Have an effective credit control procedure.
There is no need to feel as though you are being pushy when pursuing clients for payment. You could make sure friendly reminders are sent out when your invoice becomes overdue.
Be pro-active
Plan ahead to avoid payment delays. Clients may also be away on holiday so early reminders will get your invoices paid ASAP.
Do not pay your bills until they’re due.
This may sound obvious but sometimes it’s easy to instantly pay an invoice to get it off your desk.
Have a backup
If the person who normally authorises payments is planning to go away. The same applies to cheque signatories. You don’t want to be on the receiving end of a credit controller.
Review carefully
Predict the slower months in your annual forecast and projections. This will help to control cash flow over the busier months.
Clean up your debtors’ list
If you’ve been struggling to coax payment out from a few clients, it may be time to pass those debts over to a solicitor. Sometimes you have to spend a little to receive a lot.
If you want to find out anything further about this topic then please feel free to call on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email vee@navigatebr.com
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
Leave a Reply