The summer period, with key staff members being on leave and unavailable, can often lead to challenging times for many SME businesses as cashflow can be disrupted.
Andrew Oppe outlines below a few points to consider over the next couple of months that will hopefully keep the cash flowing:
- Do you know the holiday periods for key suppliers and customers? If you know when to expect your contacts to be away, you can request earlier payments to avoid delays. You could also consider pushing out the payment date on your supplier payments to match when you will get paid, if this won’t damage your relationships.
- Do you know the holiday periods for your finance team? Ensuring you have sufficient resources to cover annual leave is important to keep work flowing, but if you are a small team it may be worth considering chasing key customer payments before staff leave the office.
- Have you drawn up a cashflow forecast for the month of August? This is the best way to be sure of the available cash and realise what you need to get you through the month. This will also highlight to you those payments you can afford to be a few days late (if any).
- Do you think you may need assistance from your lender(s) during the summer? If so, now is the time to ask to ensure they have adequate time to put in place any additional facilities or limits.
It’s always good to assess how easy it is for people to do business with you. If you are not able as a business to push out payments or provide early payment discounts to your customers, you could look into a working capital finance solution to facilitate that for you.
Sancus provide specialist cashflow finance through Supply Chain Finance and Single Invoice Discounting. This allows you the ability to pay suppliers quickly whilst giving competitive payment terms to customers, as well as maximise cashflow during quiet periods and ensure you have sufficient resources to meet unexpected events. Our solutions are unsecured and designed to complement existing bank facilities to ensure cashflow is optimised at all times – especially during the summer period where cash flow can be disrupted.
Please contact Andrew Oppe for more information on maximising your working capital.
07432 076 091