It’s a stark reality- as business starts to slow down for the Christmas closure periods, so too does the cash flow. Without proper planning, small businesses could become another statistic.
For most businesses, reduced cash flow doesn’t typically have an impact until late February and early March. But while we are getting in the festive spirit, Christmas is a perfect storm, with B2B sales declining, employee leave-loading pay and a dip in cash flow caused by customer spending. It is easy for businesses to fold under the financial burden.
With proper planning, however, you can avoid the stress of reduced cash flow and, by acting now you can build a buffer to protect you from the slow Christmas period. Taking early action is crucial for businesses wanting to avoid the effects of the post Christmas slump.
Look to payment terms

While you want to ensure payments are coming in as quickly as possible, you should also try to extend outgoing payments as far as your suppliers will allow. This will allow you to reduce outgoing funds and again build a buffer of cash, reducing the risk of being caught off guard.


Assess your cash flow
Planning ahead means considering your cash flow patterns and ensuring that there are enough funds coming in compared with the amount being spent in outgoings. It seems simple but some small businesses forget to think about the obvious things.

Recover outstanding debts

While you might look to extend your own payment terms with your creditors, you should also be tightening payment terms for your own outstanding debts. Look at your debt ledger before Christmas and refer debts older than 60 days to a collection agency.
Here to help

If you are struggling to recover your outstanding B2B debts, get in touch with Cobra Financial Solutions. As an experienced and knowledgeable debt collection agency and with offices in both the North and the South, Cobra Financial Solutions cover the whole of the United Kingdom when it matters.


And although it might be difficult to think ahead, by focusing on your post-Christmas survival now, you are setting your business up for the best chance of success.


These simple steps will help you determine your priorities, analyse your strengths and weaknesses, and make sure you are well equipped to handle whatever the Christmas period throws at you. These steps might even allow you to relax and enjoy Christmas with your loved ones.


So don’t delay- get in touch with Cobra Financial Solutions today and speak to us about recovering what is rightfully yours. With a wealth of experience in the debt collection industry and with a fabulous team of debt collectors, all of whom have an amazing track record in recovering B2B debts, get in touch today!