When your accounts department is dreaming about the holiday that they’ve got booked in a couple weeks time, it’s easy for those all important credit procedures to get a bit slack. If summer is your quiet season, here are some tips to prevent cash flow problems over the coming months:

  1. Have an effective credit control procedure in place. Don’t feel as though you are being too pushy when chasing clients for payment. Have a procedure in place so that friendly reminders are sent out when your invoice becomes overdue.
  2. Plan ahead to avoid payment delays. Clients may also be away on holiday so early reminders will get your invoices paid as soon as possible.
  3. Don’t pay your bills until they’re due. This may sound obvious but sometimes it’s easy to immediately pay an invoice to get it off your desk.
  4. Make sure you have a backup if the person who usually authorises payments is planning to go away. The same applies to cheque signatories. You don’t want to be on the receiving end of a credit controller.
  5. Predict the slower months in your annual financial forecast. This will help manage cash flow over the busier months.
  6. Clean up your debtors’ list. If you’ve been struggling to elicit payment from a few pesky clients, it may be time to pass those debts over to a solicitor. Sometimes you have to spend a little to receive a lot.

At Cognitive Law, we will review your case and send a Letter Before Action out for as little as £175 plus VAT. Contact us at mail@cognitivelaw.co.uk today for more information about our fixed fees for debt recovery.

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