Small businesses need to be pro-active and keep on top of their finances during the summer slowdown or face potential cashflow problems.
That’s the advice from a Midlands debt recovery expert who said SMEs can be crippled by slow or delayed payments.
Emma Northall, Debt Recovery Manager at FBC Manby Bowdler, said the scale of the issue shouldn’t be ignored after a recent report revealed nearly £500 billion was owed to SMEs in outstanding invoices.
“Being on the receiving end of slow or delayed payments can be an issue all year round but it can be a particular problem for SMEs in the summer months when finance departments can be short-staffed due to holiday leave,” she explained.
“More than usual, businesses can experience delays and they need to be prepared to take action if it is going to have an impact on their business. Even if invoices are unpaid, businesses will still have suppliers and staff that need paying.”
According to Lloyds Bank most recent Business in Britain report, a third of businesses cite late payments as their biggest cause of cashflow problems.
Emma said every business should have a debt recovery plan in place.
“Be familiar with the payment cycles of your clients so you know when to expect payment. Have your own processes in place to identify when invoices are overdue and being proactive in chasing payment.
“Forecasting your cashflow will help you keep on top of what is going in and out and be prepared to work with a debt recovery specialist like our team at FBC Manby Bowdler if you can’t settle the issue directly.
“We are experienced in dealing with debt recovery for commercial clients across the West Midlands and Shropshire and have the up to date knowledge and legal tools to help organisations receive payments as quickly as possible.
“Working with a specialist service like ours allows companies to focus on their businesses while we work in the background to ensure their cashflow doesn’t become a problem.”