OPPORTUNITY IS BECKONING!
With vaccinations in Australia getting close to mandated levels and our major states starting to reduce lockdowns, there is, at last, some confidence in the market. This will hopefully translate into growth in SME sales and support jobs growth.
Whether your business is large or small, well-established, or in start-up mode, it is prudent to take a planned approach to manage cash flow during this expected growth period. Here are few tips for keeping on top of cash flow management during this hoped-for growth period.
- Keep on top of invoicing
It’s easy to let your business admin slip during difficult periods. However, this is the most important time to stay on top of your invoicing. You will obviously find that many customers will be slow to pay because their businesses are also suffering. Ensure that you always receive Purchase Orders and signed off Proof of Deliveries – you’ll need these if there are any misunderstandings.
- Set clear expectations with your customers
Be clear with customers that you expect them to pay within the pre-arranged credit terms. Consider contacting regular slow payers a few days before payment is due to confirm that they’ll be paying on time. Also, contact any debtors with multiple delivery points to ensure all of the required paperwork has been submitted – avoid surprises! The phone is the preferred method of contact as it is harder to be fobbed off.
- Avoid non-essential spending
Take a close look at expenses to see if there’s any spending that can wait until later when you’re back into a more regular trading rhythm.
- Access extra funding like invoice finance
With many small businesses facing cash flow shortages, it’s important to have a strategy for accessing additional capital if you need it. Invoice Finance can take the pressure off when cash flow is tight.
Invoice Finance is specifically designed to turn your unpaid invoices into cash. You can then pay suppliers and other operating expenses on time. AR Cashflow will promptly approve your Invoice Finance facility. You can then access additional funding and avoid cash flow shortages over the anticipated growth period and through into 2022.
- Make the most of the quiet time that’s approaching
Christmas will once again see a slow down after a brief post lockdown surge. Use this time to get ready for the new year. i.e. Identify which customers you want to focus on, clear out obsolete stock, write your business plan.