Managing Cashflow in the “New Normal”
There are pleas for further decisive support from the Government to avoid the risk of hundreds of thousands of jobs being lost. However, no matter what support is provided, there will be long standing consequences for many businesses as they struggle to return to pre-Covid trading levels. We have seen requests for extensions to business rate holidays, VAT cuts and access to the furlough scheme. However, with support being withdrawn and wound down, what other steps can struggling businesses take in order to minimise the risk of insolvency?
- Review – Look your ledger(s) and see what aged/bad debt is outstanding from your customers. Ensure you are proactively chasing payment as soon as payment terms have expired.
- Communicate with your debtors – regular dialogue can help identify any potential issues with payment at an early stage and enable you to take steps to protect your position (such as cancelling pipeline orders or putting deliveries on hold)
- Check – Have a look at what documents you have to support requesting payment. Do you have a copy of the contract, purchase orders, invoices and proof of delivery?
- Get the experts in – If you have not been successful at obtaining payment or your customers are refusing to pay the invoices, contact email@example.com to get some initial advice and to consider what options are available to you.
We offer a ‘no recovery, no fee’ collection process which means that you do not need to pay anything to us if we are unsuccessful in recovering your aged/bad debt at the pre-legal stage. There is no obligation to take further action so there is no risk to you in pursuing this course of action. If you do decide to issue legal proceedings, we offer a fixed fee service to give you certainty on costs.