Twelve tips for a cash happy Christmas
Announcement posted by Oxford Funding (Bendigo Bank) 13 Nov 2009
With Christmas fast approaching, crisis weary wholesalers are looking to reap the rewards of the annual spending splurge.
But heightened consumer activity isn’t all good news. To meet increasing demand, businesses often need to increase their wage, stock and operating costs before Christmas profits are realised – putting a stressful strain on cash flow.
To cash in on the Christmas cheer – without putting their operations in the red – finance specialists Oxford Funding offer the following tips to small businesses:
On the first day of Christmas:
Review your invoicing procedures and ensure that your invoices are issued immediately goods are shipped.
On the second day of Christmas:
Update your cash flow projections to anticipate any Christmas shortfalls. Sales activity usually leaps 30 per cent.
On the third day of Christmas:
Review your stocks and supply chain, looking for ways to tighten ship or for old inventory you can quickly move on.
On the fourth day of Christmas:
Consider shortening your payment terms or offer incentives to your debtors for settlement by new year.
On the fifth day of Christmas:
Consider taking deposits when orders are made.
On the sixth day of Christmas:
Monitor your increasing wage and supply costs – make sure you have a plan to stay cash flow positive.
On the seventh day of Christmas:
Maintain your cash reserves by taking full advantage of the payment terms offered by your suppliers and paying on the last day, or ask for discounts for earlier payment
On the eighth day of Christmas:
Quickly chase up customers you know to be slow-paying, or consider asking them for up-front payment during the Christmas period.
On the ninth day of Christmas:
Watch out for January – follow up outstanding invoices before your customers and their accounts departments go on holiday.
On the tenth day of Christmas:
Sign-up for debtor finance for the option of receiving 80 per cent of invoice values within 24 hours of issue, instead of offering debtors discounts for early settlement
On the eleventh day of Christmas:
Consider getting credit checks on any new customers to ensure that they can pay.
On the twelfth day of Christmas:
Sit back, relax, say farewell to the crisis and welcome the new year!
ENDS
About Oxford Funding
Oxford Funding, a wholly owned subsidiary of Bendigo Bank (ASX: BEN), is a specialist provider of debtor finance or cash flow solutions to small and medium enterprises. Since its inception in 1994, the company has continued to remain at the forefront of the Australian debtor finance industry due to its flexibility, innovative product portfolio and commitment to best practice service delivery. Oxford is a member of Factors Chain International (FCI). www.oxfordfunding.com.au