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COVID-19 Advice for business - Working capital - news article image

COVID-19 Advice for business - Working capital

20 Mar 2020

1 minute read

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


  • 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


  •  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


  • Transfer any excess cash into a deposit account

For more information contact your usual Shaw Gibbs contact or me via

COVID-19 Advice for business - Working capital - news article image


Sarah Gardener

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