For small businesses Fridays can be the most stressful day of the week. Traditionally Fridays are wages day and therefore you need to ensure that sufficient funds are in your account to cover the cost of your wages. Whilst your business balance sheet may be in order your cash flow might be suffering due to late payments.
Late payments can have a horrid effect on a business in the short term and whilst you are confident that you will receive the monies in the long term this does not help you with the immediate lack of funds. Therefore you scrape and borrow sufficient monies to cover your costs in the vain hope that Monday will be a brighter day. At the same time you promise yourself that you won’t allow your business to be in the same situation again in the future, well not until next Friday at least!!
Plan your cash flow and ensure that your credit control policy protects you from the opportunity of late payment.
Quite often late payments are due to the creditor’s reluctance to ensure that their customers pay on time. Whether it is because they don’t want to have an awkward conversation or alternatively don’t want to upset the customer, in case it has a detrimental effect on future business. However this may, as a result of the immediate constraints on your cash flow, prevent your business from being able to trade and thus cause its ultimate demise.
A comprehensive credit control management policy can prevent this from happening to your business. The ICE PACC is a unique online credit control tool that incorporates a host of unique functions including free pre legal recovery. The system is based on ensuring that your credit control process assists your cash flow and prevents bad debt
For further information about the ICE PACC contact us at info@icepacc.com
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