- 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.