In recent times there has been the tendency for the festive season to stretch out over a number of weeks and therefore with just over 7 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 Friday December 19th could well not be settled until the week beginning the 5th January – resulting in a 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. Already there are reports of shortfall in available haulage capacity for December.
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 are positioned accordingly.
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