Independent Newspaper features Guildways in 10 ways to protect your financial interests
The Independent Newspaper included UK & International debt collection specialists Guildways as part of its feature on the 10 ways to protect your financial interests.
As we maneuver our way out of lockdown and we see the help from the government come to an end, it is going to be essential that businesses keep on top of their late payments in order to protect their cash flow.
Cash flow is the most important factor in determining the survival of any business. Figures reflect that sales have dropped by approximately 50% for businesses that are in consumer facing industry. Followed by 35% in the food manufacturing and construction industry.
Collecting late payments can seem time consuming and daunting especially when it comes to making debtor telephone calls. However it is an essential process that all finance departments should undertake in order to protect their cash flow.
The ways in which you as an organisation can help yourself include:
- Sending email copies or some form of digital copy of invoice to your customer. Most businesses operate digitally now and therefore may not check their post regularly. This will also reduce the risk of your customer claiming that they did not receive your invoice.
- Provide as much information as possible on your invoice. This will speed up payment because it will allow your customer to easily identify the order.
- Ask for payment to be made in BACs and provide your bank details. This is a much quicker process for receiving payment than asking for a cheque.
- Prioritize your cash outflow. Take a look at your variable expenses and assess whether these can be reduced at times where cash flow is at risk of becoming negative.
We would encourage you to chase any late payments you have accrued, quickly, to ensure best chance of survival. You shouldn’t feel intimated at the aspect of needing to get this done quickly because a good and effective credit control process will ensure that this becomes second nature for you and your business.
11 Oct 2021