After all that 2021 has thrown at us, it’s hard to believe that we are rapidly approaching the Christmas period. For some businesses, this will be a time of peak volume, but for others, it’s a time when activity stops, as clients go on holidays and business as usual takes a pause.
If you are in the latter category, it’s essential to think about how you will ensure you enter the slow down with a healthy bank balance, so you can hit the ground running in January. So here are five tips to get your cash flow sorted this silly season.
#1 Review your cash flow and forecast now
It can be easy to overlook the numbers as you reopen and ramp-up in the wake of lockdowns, but going into the Christmas period, it’s essential to understand where you stand now and for the first few months of next year.
#2 Get your invoices and reminders out ASAP
Many organisations stop processing new invoices from mid-December as they prepare for office and service closures, so it’s important to get your invoices submitted now. The same goes for your late payments – make sure you are issuing reminders ASAP to avoid waiting until the new year.
#3 Offer flexible payment options
Offering flexible payment terms can often be easier said than done. Firstly, there is an immediate impact on your bottom line, and then there is the administrative headache of managing different payment terms for each client.
Selectpay’s simple business-to-business buy now, pay later solution can help. It offers your clients the opportunity to pay over monthly instalments for a transparent fee while you get paid upfront. It costs you nothing and takes no resources from your business, so it’s a great way to manage cash flow on both sides of the equation.
It can also be a great way to support your clients who operate on a calendar year. They can use your products or services now and pay from the 2022 budget, helping you get more sales and payments in the door now.
#4 Manage your own expenses
Businesses are often advised to delay expenses to maintain a healthy cash flow over the Christmas period, but this just isn’t possible in many cases. In addition, suppliers may be offering great deals to boost their own cash flow, so sometimes it’s the best time to buy. As well as being a great solution for your clients, Selectpay’s BNPL is an excellent way to cover your own business expenses so you can take advantage of a deal today and pay next year.
#5 Set yourself up for success in 2022
If you find yourself spending inordinate amounts of time chasing late payments and rushing to prepare for the Christmas shutdown, get your business ready for 2022 now. Selectpay offers customisable buy now, pay later and invoice financing solutions designed for Australian businesses.
Our solutions are easy to use, flexible and help you keep your cash flow healthy all year round. Visit www.selectpay.com.au or get in touch with our team to find out how we can support your business to grow.