They say it makes the world go round. Certainly if you are running a business, it is a little more impactful than that. For many of us in the sector, this is the time of year when cash-flow is tightest. Our warehouses and shops are stocked high with stock and it is the quiet before the storm. Next week and for the four weeks following the shops will be crammed with consumers buying the stock we have planned for, bought and even paid for months ago in some cases. I don’t think I am giving away too much that our debtor book is more than double its normal value at this time of year.
A few tips to help us manage cashflow at Christmas:
· Use the fact that customers will want more stock to ensure they pay for any invoices that are overdue
· Do not be tempted to “let it go” as it is Christmas and you are getting excited about the turnover figures
· For small businesses especially it is easy to get sucked into everything to do with pushing orders out of the door and forget to collect the debts.
· Do not extend the “season of goodwill” to persistent bad payers! (more…)