JOHANNESBURG – The first three months of any year is traditionally the time when many businesses that provide commercial goods and services on credit terms struggle with their cash flow.
Generous bonuses in December, staff on leave and a lack of enthusiasm from clients to pay what is owing according to their agreed terms all have a negative cash flow impact.
It is not unusual to see a spike in delinquent debtors in this quarter, especially for businesses whose clients operate in and are reliant on industries such as manufacturing, construction or distribution that traditionally shut down over the December holiday period. For any business owner, these times can be daunting, as cash flow struggles have significant ramifications.
Every Chief Executive of every business – no matter how small or large – dreads having to deal with cash flow pressure! Making calls to suppliers, financiers or even staff to beg for extensions is not fun.
So how do you avoid those calls? What are the practical steps you can take in your business to keep it “cash fit”? What can you do differently in your business in 2019?