In these difficult times, the following points are intended to help maintain a fluid movement of cash into your business:

Invoicing

• Issue invoices more regularly and consider invoicing upfront or sending interim bills
• Look at offering discounts, for example 5% if payment is made within 7 days to bring forward receipt of the money.
• If taking on any new customers ensure you use a credit check report for example, Experian

Debt collection

If you use a cloud-based accounting package, look at the possibility of automating your debt collection system (eg Chaser)

• If you have debts beyond your payment terms look at placing the invoice with a debt collection company
• Look at financing your debtors using invoice discounting
• If you have individual large sum invoices look at single invoice finance
• If customers are struggling to pay be flexible and allow a payment plan by way of monthly direct debit

Stock

•  Look at your various stock lines and operate a just in/just out system

Payment to creditors

• Contact your suppliers to discuss extending terms or agreeing a payment plan
• If offered an early payment discount by individual suppliers, look at settling their invoices first

Capital expenditure

• If considering purchasing capital equipment, investigate leasing the equipment rather than purchasing.
• Purchase any new equipment via a hire purchase agreement
• Extend the term of the hire purchase agreement to reduce the monthly payments

Cash

• Transfer any excess cash into a deposit account

For more information contact your usual Shaw Gibbs contact or me via sarah.gardener@shawgibbs.com