Get a grip on your credit control

The biggest worry that most of our clients face is not getting paid on time.

Managing cashflow at the moment is absolutely crucial to business success. Businesses can have full order books and the forecast for profitability might look good but in the short term they need to make sure they have the money in the bank to pay the bills as they fall due. Ignoring credit control and focusing your time solely on selling is the completely wrong approach and could end up costing you dear.

If the worst were to happen and your forecasts show that late payment is going to plunge you into the red, then although conventional bank funding is not as easy to come by now there are alternatives including the Small Business Loan Guaranteed scheme.

The full article has many useful links to guidance on this subject – from how to prevent yourself getting into a bad cashflow position in the first place to what to do if you find yourself struggling. Go to Get a grip on your credit control or risk debt strangulation.

One area that the article doesn’t mention, but has been something that has particularly helped us at K&H, is collecting debts by direct debit. This has had quite a significant impact on our cashflow. If you want to know more about that specifically, do call our Finance Director, Lisa Bramley on 0118 923 5816, who can explain how it has worked for us and/or what you need to do if you want to set up a direct debit scheme for yourself.

If you would like to discuss this article further, please contact Pauline Williamson on 0118 923 5817 or via email.