{"id":2016,"date":"2015-06-08T09:30:24","date_gmt":"2015-06-08T09:30:24","guid":{"rendered":"http:\/\/my-brains.co.uk\/jackross\/?p=2016"},"modified":"2015-06-01T08:16:38","modified_gmt":"2015-06-01T08:16:38","slug":"improving-cashflow-and-tackling-late-payment","status":"publish","type":"post","link":"http:\/\/my-brains.co.uk\/jackross\/improving-cashflow-and-tackling-late-payment\/","title":{"rendered":"Improving cashflow"},"content":{"rendered":"

A guide to improving cashflow and tackling late payment.<\/em><\/p>\n

More than any other factor, a business is defined by the balance between the money coming in and the money going out over any period of time. Ideally, the scales should be tipped in favour of the former, but the reality of the business environment is often more complicated.<\/p>\n

When you start a business, it\u2019s easy to concentrate your efforts into getting sales. Whether you are selling a product or a service, gaining your first order or making your first sale is incredibly exciting. It provides tangible proof that you made the right decision to set up your enterprise.<\/p>\n

However, as many people discover, making a sale can seem like the easy part.<\/p>\n

Getting paid for that sale is where problems often start and where cash flow \u2013 or rather lack of it \u2013 comes in.<\/p>\n

What is cashflow?<\/h2>\n

Cashflow is the movement of money into or out of your business. If more money is going out, or due to go out, than you have available, then you have a cashflow problem. There could be a number of reasons for this: it could be down to mismanagement or poor buying decisions but in many cases it can be attributed to not being paid on time.<\/p>\n

Knowledge about cashflow and an awareness of how it works as part of a company\u2019s day-to-day operations is important for anyone in business, not just those who are starting out. Even if your business has been up and running for some time there is always opportunity to pick up new advice and tips on how to spot customers who may cause you problems, the right and wrong way to chase payment and, most crucially, what to do if the scales tip dramatically out of your favour.<\/p>\n

Get in touch today on 0161 832 4451 to talk about your cashflow.<\/em><\/strong><\/p>\n

Defining late payment<\/h2>\n

Unless you have agreed when you’ll be paid, a payment becomes late 30 days after the customer receives the invoice or you provide the goods or service (if this is later).<\/p>\n

You can claim interest and debt recovery costs if you experience late payment.<\/p>\n

Need action now?<\/h2>\n

If like many small businesses, you\u2019re relying on a payment coming in to pay your VAT bill or wages and it fails to materialise, what can you do?<\/p>\n

Before considering legal action, check that you have done nothing to reduce the likelihood of being paid.<\/p>\n

A surprising number of businesses open themselves up to being taken advantage of by not being able to confirm any of the following:<\/p>\n