Prevent Late Payments through Professional Credit Control
Posted on 11th February 2021 at 09:30
The key to ensuring business continuity is positive cash flow. On paper this is very straightforward, as it simply means higher levels of money coming into the business than those that are going out. Key ways to achieve this are cutting costs where applicable and taking advantage of relevant tax relief schemes, which help to reduce costs whilst maximising profits.
Unfortunately, maintaining positive cash flow can be hard work when your customers pay you later than agreed. Though confirming when the payment will be due prior to commencing work and making the deadline clear on your invoices, it’s a sad case of affairs that many businesses are paid late either occasionally or on a regular basis. The worst-case scenario that arises far too often is not being paid at all, which really is unacceptable.
Late payments are one of the most common causes of negative cash flow, which is when there’s more money leaving the business bank account than there is being introduced into it. This can result in all kinds of problems, including a poor credit score, lack of funds for activity linked to business growth, and of course, your own staff and suppliers also being paid late.
TreyBridge Accountants provides affordable and effective credit control to businesses of all shapes and sizes. It’s not just for large companies, as we also help sole traders and start-ups to retrieve funds that are rightly owed to them. This service comes with the obvious benefit of improving your bank balance, plus there are multiple other perks.
Easier budgeting and forecasting
When you’re paid what you’re owed on time every time, you get a much clearer picture of your financial health. This enables precise budgeting, such as knowing that you can allocate so much to marketing each month, upgrade your IT later in the year, and so on.
Simultaneously, it allows in-depth forecasting, which is when we help you to anticipate how your business will develop and grow in the longer term.
Better brand reputation
When you have positive cash flow, your brand benefits in many ways. One of these is its reputation, as being able to pay on time will put you in the good books of your staff and suppliers. Meanwhile, HMRC will see you as a responsible business that knows how to remain solvent.
Access to finance
If you ever need to apply for business finance, negative cash flow will have a detrimental impact. No access to finance options can lead to your goals taking much longer to achieve, which in turn causes business growth to sputter and stall.
Peace of mind
Knowing that there are multiple customers who are bound to pay late is a massive stress that simply isn’t necessary. Stop wasting time nudging these culprits yourself and get in touch with TreyBridge Accountants, as we know exactly how to chase and recover late payments in an effective way.
We also offer a credit management system, which involves assessing the risk connected to potential customers before you even initiate a working relationship with them.
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Tagged as: Credit control
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