In recent times
there has been the tendency for the Christmas holiday season to stretch out
over a number of weeks and therefore with a few weeks 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 18th 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 are likely to be
disruptions to the supply chain.
In recent years trying
to get things done in the UK during the latter half of December has proven 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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