Fuel price rises, food shortages , increase in wages! What could be next?
Looking forward as a debt recovery specialist we are looking at the future with a glass half fill approach.
As we see it there is a perfect storm on the way and it has been masked by Furlough and the number of companies being so busy they have taken their eye off their credit management ball.
Only today we have been speaking to a company who are so busy they have only just realised that a business has not paid them for a couple of months. They have continued working for them and have spoken to their client virtually every day.
As the company appears to be successful and business seems to be flowing hey did not see a problem until they said they will pay next month. That would suggest a possible cash flow crisis and from our client’s point of view is it one that will be resolved by next month.
Are we looking at a domino effect as one business fails to pay the next one can not meet their commitments and this affects the next business along the chain.
So, is there an answer?
Well, the thing is to be onto of your outstanding monies with good credit control. So often credit control is left to when someone in the office has time or there is a reaction to a lack of cash in the bank account!
It is a service that can be outsourced for a small amount each month, therefore saving you on wages, national insurance, PAYE and pension contributions but more importantly you are getting a regular service to ensure your cash flow and the stability of your company.
So what are your thoughts and practices? Who does your credit control? Is it reactive or proactive?