This is the time of year that businesses dread – the summer holidays are nearly over and you’ve caught the cash flow blues. You might know the feeling… when you have bills to pay but your clients are still away, awaiting payment themselves or just struggling with their own cash flow.
According to a recent survey by Xero and article from stuff, one in two SME owners have gone without pay and 17 percent maxed out their credit cards to solve cash flow problems. The survey also stated that 28% of businesses did not have any provisions in place for cash flow problems. Another interesting statistic from the Xero survey claims that seventy-one percent of businesses were not expecting their revenue to fall over summer, and six out of 10 were not receiving any cash flow advice.
Have you experienced this in your own business? If so, do you have provisions in place to counteract this?
Our top suggestions, to counteract cash flow issues would be:
- Issue new invoices earlier than you normally would – get billing fast!
- Offer flexible payment options – including fee funding if you are a professional advisor.
- If you need to, consider offering an early payment discount.
- Prepare a 3 monthly budget for the holiday period
- Talk to your suppliers about delaying or spreading payments to them.
- Utilise a dedicated accounts receivable resource/specialist supplier to improve payment speed. Check out smartAR as a great example.
Another tip, which will help you get paid 37% FASTER, is offering your payment options via your own branded ‘online payment page’. You can integrate this page onto your website, and showcase ‘pay now’ buttons and links via your invoices, statements and reminder emails. By making payment seamless from any device it will accelerate your collection process!
Take a step now to beat next summer’s cash flow blues. Schedule a FREE cash flow strategy call today by clicking here!