CASH FLOW PRESSURES 2023 Ep. 2
Begbies Traynor are one of the U.K.’s biggest insolvency practitioners.
They produce a “Red Flag” Report on the health of UK businesses on a regular basis. I’ve added below a link to their report of 24th January 2023 the contents of which make concerning reading for U.K. business owners. The opening line of Begbies report states :-
610,405 businesses across the U.K. in “significant” financial distress.
My main takeaway from Begbies report is that U.K. business owners need to TAKE ACTION NOW !!! ……in order to improve their cash flow……….this is urgent.
To begin taking effective action I recommend breaking the big cash flow problem down into its constituent parts. Please consider this simple equation :-
CASH FLOW = Cash inflows – Cash Outflows
Accordingly do all you can to maximise cash inflows whilst carefully managing cash outflows and carefully consider the elimination/reduction of each non critical cash outflows.
Cash Inflows
For many SME owners improving cash inflows will centre around collecting trade debtors efficiently, on time and taking steps to ensure that slow payers are brought back to the agreed terms of credit.
In short, think hard about your cash inflows and your cash outflows then …….
TAKE ACTION !!!
If you don’t have the skills in house to significantly improve your cash flow then you need to urgently look outside your organisation and consider outsourcing the work to experienced professionals who can “hit the ground running” to help you to tackle your cash flow pressures.
Here’s the link to the Begbies Traynor report :-