In recent times there has
been the tendency for the Christmas holiday season to stretch out over a number
of weeks and therefore with just over a month to go to Christmas it would seem
an appropriate time to consider the implications for business.
Without doubt of biggest
concern to SME’s will be the impact on cash-flow. Many companies are operating
very close to the edge and any delays in payment could have serious
consequences.
In some instances
invoices which fall due for payment after the 17th December could
well not be settled until the 3rd January – giving an at worse
scenario of 3 weeks delayed payment.
It would therefore seem
prudent to look at your last half December receivables and make a realistic
forecast of just how much cash will “come in”.
Similarly with “just in
time” inventory it would be sensible to ensure that sufficient stock will be on
hand for the early days of January when there will be inevitable disruptions to
the supply chain.
Trying to get things done
in the UK during the latter half of December will undoubtedly prove to be a
challenging task so it would be best to ensure you take appropriate action now
and are positioned accordingly.
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