- 02 Dec
Help With The Christmas Payments Slowdown
Christmas is only a few weeks away again, and it is now that many businesses will begin to notice the annual Christmas payments slowdown. This is when customers can take longer to pay.
Christmas Payments Slowdown
This can be due to:
- Their own customers taking longer to pay them.
- Accounts payable staff taking time off on holiday.
- Shutdowns over the festive period.
The impact on the cash flow of suppliers can be a problem. If customers don't pay as promptly as they should, or have previously, you won't have the cash coming in to meet your own creditor payments, staff payroll etc. In addition it can be an expensive time of year if Christmas, or annual bonuses are payable to staff - or if the payroll needs to be paid early to account for the holiday period.
Help With Cash Flow Over Xmas
There are a few things that you can do to try and keep your cash flow in good order, during the run up to the Christmas period:
- Produce a cash flow forecast, so you can see what you need, when to meet your obligations.
- Try and get your sales invoices out promptly, in order to speed up payment times.
- Call customers before invoice are due, in order to pre-empt any payment issues.
- Read our article: "6 Ways To Solve Seasonal Cash Flow Problems".
It is also important to take action now, to avoid a knock on effect going into the new year. If you cash flow forecast shows a deficit, or if it is going to be overly tight should there be any payment delays - take remedial action immediately. Don't wait until you are really up against the wall and under pressure from creditors to raise the funding that you need to get you through the festive period. There is still time to get your finances in order prior to Christmas.
- 24 Oct
Are Cash Flow Constraints Stopping Businesses Taking Orders?
Marketinvoice published some research in Finance Monthly, that indicates that some 87% of businesses may be stopped from taking on potential orders, due to cash flow constraints. That's a large percentage to be turning away business, at a time when our economy is experiencing little growth in GDP (Gross Domestic Product - the key measure of economic growth).There continues to be, what I would...
- 03 Oct
Why Do Profitable Businesses Sometimes Have Cash Flow Problems?
Why do profitable businesses sometimes have cash flow problems? The answer, is because profitability and good cash flow are not the same thing. Whilst it is more likely that your cash flow will be good if your are profitable, it is far from a certainty.The reason that profitable businesses can still have cash flow problems is to do with how quickly their customers pay, versus how quickly they...
- 27 Sep
How To Increase Working Capital
This is a short article about how to increase working capital within your business.RAISE WORKING CAPITALWorking capital (WC), in financial terms, is the amount by which the current assets of a business exceed its current liabilities. Current assets, or short term assets are the:Current liabilities are all creditors that are due to be paid with a year.The calculation is as follows:In practical...
- 09 Aug
How To Improve Your Business Cash Flow
Three simple steps to improve the cash flow of your company are explained in this short explainer video:For further help improving the cash flow of your business, we have some additional resources that will be of interest.Firstly we have an article which explains 10 steps that you can take to increase cash flow.Secondly, if you are looking for a cash injection into your business, please see...