Guide to Cash Flow Management

how to solve cash flow problems

Cash flow is the lifeblood of any business, and managing it effectively can mean the difference between make or break.

When we refer to cash flow management, we’re talking about making sure there is enough cash available to cover all your outgoing expenses. If your outgoings are more than your sales and you run out of cash to pay staff or suppliers, your business will risk insolvency. (more…)

The way to get paid – 12-Step Action Plan to stop customers from paying you late

12 Steps to getting paid

Dealing with late payment can be tricky for small and medium sized businesses. Handle it wrong and a customer could be lost, ignore the issue and it can stifle business growth, have a huge impact on cash flow and even cause a company to go bust.

Staggering figures published in a government paper, revealed that small businesses spend around 130 hours a year chasing late payments, equating to an average cost of £1,500 per business.

The problem is endemic with two thirds of SMEs suffering according to research by the IOD, but follow this 12-Step plan and you’ll be able to minimise the damage late payment causes your business.

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The 10 Steps you need to take to turn around a struggling business

turning around a struggling business

Most companies will face some kind of cash flow problem at some point. Temporary cash flow problems or financial squeezes usually arise out of matters that are outside of the immediate control of the directors, but when problems like this happen it’s vital you take the right steps and move quickly to ensure the issue doesn’t escalate.

To help you navigate safely through troubled financial waters, we’ve asked Richard Saville of Corporate Financial Services to set out the 10 key steps you need to consider when your business is faced with a financial problem. (more…)

How to avoid late payment problems

The single biggest cause of small business failure in the UK is poor cash flow management, most often brought on by late payment issues. It’s therefore vitally important that you do all you can to ensure that your customers pay you on time.

Here are 7 things a small or start-up business (or any organisation for that matter) can do to ensure that late payment issues do not threaten the viability of their operation:
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What to do when a client refuses to pay or can’t pay

If you’ve got a business headache right now, there’s a pretty good chance it’s to do with clients owing you money.

It’s almost as if the economic downturn has become a prime opportunity for anyone who fancies improving their own cash flow to help themselves to better credit terms from their suppliers… but without asking permission.

That has a knock on effect right down the line. And it’s no wonder that small, cash poor companies at the bottom of the chain are the ones that suffer the most.
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Late payment the biggest cash flow killer

A recent survey shows, once again, that late paying customers remain the biggest single threat to the health of the UK’s small businesses. Here, we provide some tips on how to avoid late payment problems.
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Top 10 business finance tips for start-ups

When you are starting a new business you have a million and one things to think about. As a new business owner, many of the issues you will need to tackle, will be completely unfamiliar to you.

With so much to do, you will need to learn quickly. If the financial side of the business isn’t your strong point, here are 10 tips from ByteStart to help you stay on top of your business finance.
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IT Contractors – how to avoid late paying clients

There has been much talk recently about freelancers and contractors struggling to get their invoices paid by the agencies or end clients.

With the credit crunch hitting cash flows hard, the bigger companies are often guilty of extending credit terms without your say so. If, firstly, the client delays in paying the agency and then they delay in paying you, it’s added weeks on to money that would be better off in your bank.

So what can be done about it?
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How to speed up late payers and when to use a debt collection agency to tackle the worst culprits

Sadly, there is a real culture of late payments in the UK. For business to business transactions, most firms automatically expect 30 days credit. In fact, if you don’t agree different terms, the law says businesses can take 30 days to pay by default.

If you find yourself lucky enough to be supplying very big companies, you will sometimes find they demand 60 or 90 days to pay, or maybe even longer.
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