Does Your Business Have A Cash Flow Issue? – What To Do.
There are many businesses here in the UK that are struggling financially on a short term basis. For instance, it may be that one of your customers is late paying the invoice you sent to them which is putting pressure on your own cash flow resulting in you not being able to pay one or more of your suppliers. So, what could you do if this were to happen?
Well, there are so many potential options but let us discuss some of them here. We hope that this may be of some help to you.
If you feel in a position to do so, one of the quickest solutions is that you could always get on the phone to your customer and try to convince them to pay your invoice that is now overdue. You may be surprised the effect such a call may have as your customer may feel embarrassed that he or she is late paying your invoice and give it their immediate attention.
Another option is to speak to the business account manager at your bank where you maintain your business current account, explain the situation you find yourself in and see if it would be possible to arrange an overdraft facility or increase your existing overdraft limit to enable you to pay your pressing creditors pending receipt of the monies owed by one or more of your debtors.
Are you able to inject your own personal monies into the business on a temporary basis so that the business can pay a bill? You may wish to seek advice from the likes of your accountant to discuss the pros and cons of taking such action.
You may be able to take out a business credit card to pay one or more of your creditors although do bear in mind the interest rate often charged for such cards can be quite high.
There are no doubt some other options so you may wish to get some professional advice as to which option is the most suitable for you and your business to obtain short term business finance.