Although we all love a well-deserved holiday, Business Owners often find that their cashflow is impacted.
Every year we like to circulate to our clients some tips that may help avoid unnecessary financial pressures.
Tip 1 - Review forecasts
Take the time to review revenue projections for the next 3 to 4 months. What impact will holidays coming up have on your financials? Try our Free Business Forecasting Tool.
Tip 2 - Review your debtors and payment cycles
If you are having issues with prompt payments, options are available such as Invoice funding which is often an easy solution.
Another option to look into is offering a discount to clients who pay promptly.
Tip 3 - Operational costs
Review operating costs on a regular basis. Can savings be made by changing suppliers or negotiating a better rate?
Ask suppliers if they will discount for advanced payment or if they have flexible payment terms.
TIP 4 - Be proactive
Plan ahead, not in the moment. A plan will keep you on track and also provide piece of mind.
As an example, if you are looking for a Short Term Unsecured Business loan the best time to apply is before you need it.
At time of application, many funders will request your last 90 days bank statements and base their assessment on revenue for that period. If you apply for finance when turnover is down due to a Holiday period, it may impact on the assessment and approval amount.
Tip 5 - Enjoy your holidays
Take time to relax without worrying about the business. Before you know it, the break is over and you're back to work.
Discuss your financed needs with an experience broker today! Call us on 1800 011 981 or enquire online.