Small to medium Business Cash Flow
One of the regular questions we get asked is how we can help a Small to medium business with their cash flow?
There are some simple and easy ways you can help yourself from the start:
Credit check prospective customers
This may seem like an obvious one but there are a lot of companies who will start a business relationship with a company without doing the basic checks. You may have a process already in place to do this or you may want to seek a third party to do this for you. Either way make sure this is your number one priority. It is better to know before you hand over goods or services.
We are currently offering a free credit check if this is something you would like to try
Review your order to cash process
Do you have a process in place with strict deadlines to make sure that you get paid on time and within your T&C’s. Having someone within the business who is responsible for ensuring these are adhered to can make a difference to a companies bottom line. This can be as simple as ensuring that you send out the invoice on time, change from sending them by post to email. You could even introduce a read receipt on your email so you know that it has been received.
Resolve complaints quickly
If a customer isn’t happy they wont pay on time, make sure you have a process in place that customers agree to from the start. Have a strict timescale where a company can let you know they aren’t happy. If complaints are made make sure they are dealt with quickly and efficiently to stop the payment becoming an issue.
Review your cash flow on a regular basis
Don’t get to the end of every month and start to panic, have a process in place where cash flow is checked on a weekly basis and any issues quickly picked up and dealt with. The more often you visit cash flow the less time it will take to get your head round the issues and get them resolved.
These pointers may seem obvious but if you aren’t spending the time each week to identify issues and resolve them you will soon start to see the snowball effect.
If time is the issue, looking for a third-party resource may be an option. At Credit Management Group we help a large number of companies to get their cash flow back in order. Why not get in touch and see if we can help you today.
