Cash Flow

Trade credit is normal practice in most fields of business, but credit improves the cash flow position of the purchaser at the expense of the supplier.

Late payment and bad debts are two of the biggest problems facing small businesses and in severe cases can cause a business to fail despite full order books and satisfied customers.

Managing cash flow is therefore a crucial element in the success of a business. One of the most important ways of ensuring that a business has sufficient cash - to fund growth or reduce the need for borrowing - is to collect money from customers as quickly as possible.

Make collection a high priority. Otherwise your customers won't make payment theirs !