How to Keep Momentum on your Credit Management Function During Christmas and New Year
The Christmas period signals a slow-down for many UK businesses; Christmas excitement takes over and the majority of businesses close during part or all of Christmas and New Year celebrations.
In order for businesses to maintain cash flow during this time, they must have an effective action plan in place to ensure the highest possible returns.
Your Credit Management Function over Christmas and New Year:
Remain consistent
Your business should remain consistent in its chasing strategy right up until you close for the Christmas period. Try to get in as much money as possible before this time as you may potentially go for as long as two consecutive weeks without payment; this could have damaging effects on your cash flow leading into the new year.
Plan your time well
You should aim to contact all customers with outstanding payments before you leave for Christmas; think of this as your deadline, as even if you return to work in between Christmas and new year, there is no guarantee your customer will be there to receive your chasing and indeed make payment. If you wish to chase for payment in between Christmas and new year, I suggest you agree a time & date to call.
Make reasonable requests
If invoices fall due at the end of December, there is a chance your customer will not be in the office to pay it; customers with invoices that fall due around this time should be contacted prior, where you can make the reasonable request of payment before this date, asking them to take into account the lull over Christmas. If your customer is not in a position to make payment early, ask when the payment date will be and ensure you chase when the time comes.
Hit the ground running
When you return to work in the New Year, hit the ground running; ensure you return to collection strategy promptly, and begin the New Year as you mean to go on.
Download our Collection Strategy Toolkit to ensure you have the most effective strategies and techniques in place within your Credit Management Function.
