Cash Flow 

Cash is the oxygen that enables a business to survive. A business can survive for a short time without sales or profits, but without cash it will die. Whatever the size of your business cash flow is critical to survival and future success. Big companies may have sophisticated in house credit management techniques to help them, but smaller companies are often so focused on the day to day challenges of chasing business that cash flow management can sometimes seem secondary. FWD can outline the steps that you can take when dealing with your customers, suppliers and stakeholders to improve cashflow. We  can also highlight common cashflow problems and advise you how to avoid them. No matter how effective your negotiations with customers and suppliers, poor business practices can put your cashflow at risk. Look out for:-

• Poor credit control – failure to run credit checks on your customers.
• Failure to fulfil orders – if you don’t deliver on time or to spec, you won’t get paid.
• Poor marketing – if your sales are static or falling, revisit your sales and marketing plan.
• Poor supplier management – your suppliers could be overcharging. Always try and negotiate.
• Poor control of costs – look where you can cut costs. Consider outsourcing non-core activities such as payroll services to FWD. Review your utilities contracts and all bought in business services to see whether it is possible to reduce costs by switching or re-negotiating.
• Inefficient ordering receipt – make it easy for your customers to order from you. Where possible, accept orders over the telephone, email or via your website. Ensure catalogues and order forms are clear and easy to use.
• Poor accounting – an efficient accountant can help to prevent a cashflow crisis. FWD understand how to tackle every aspect of a businesses cash flow management.

In a recent survey:-

• 50% of UK SMEs face late payments (FSB, 2023).

• 30% avoid chasing debts to preserve client relationships (Xero, 2022).

• Only 16% of micro-businesses report always being paid on time (low-risk sectors only).

• Just 8% escalate to legal action—most cite cost barriers (FSB).

• £23.4bn total late payment debt owed to SMEs annually (Pay.UK, 2023).

If you are interested in FWD’s Cash Flow Management services then please contact us to find out more.