5 steps to avoid Christmas cashflow issues
With Christmas creeping up on us the last few weeks in December are crucial to ensuring that this is no different to any other month for your Cashflow.
This time of year is often a time when businesses wind down and start to think of the new year. Typically seasonal illness starts to kick in affecting how businesses can manage their daily processes.
No Business owner wants the headache of an overdraft for Christmas and a big pile of overdue invoices to chase as soon as they are back the new year.
We have come up with our top 5 strategies that should make sure you don’t have this headache into 2024:
Follow up all outstanding invoices
Give your clients a friendly call to find out what their operating plans are for over the Christmas period and when their payment runs will be.
Are they shutting down? Is your normal contact going to be in to authorize payment? Have they arranged everything before they go on annual leave?
If it doesn’t look like there is a plan in place to pay your invoice, suggest one. Can they pay earlier, can you have an alternative contact to liaise with?
Suggest alternative payment options
If you have a customer that likes to pay by cheque ask them if they can pay by BACS this time, explain your shut down period and no one will be available to process that payment.
Try to get a payment date so you know when to expect it.
Chase payments before they are due
Chase all outstanding payments now, don’t wait for the due date to pass and then be disappointed when it doesn’t arrive.
If you can get a date for all payments then you will be able to plan, if your customers speak to you at least you will at the top of their payment list.
Say NO to paying late
When your speaking to your customers they may ask to extend payment terms until early January because it’s their year-end on 31st December. Say no in a customer focused way or it will become an expectation.
Pay your suppliers
Your suppliers will be in the same situation as you, pay your invoices on time to ensure your relationships continue into 2024.