Member Article

Top cashflow tips during postal strikes

IGF Invoice Finance, the leading independent commercial finance company specialising in the small and medium sized business market, warns that postal strikes can wreak havoc with SME cashflow.

IGF’s Managing Director, Tracy Ewen, gives her five tips for preparing SME cashflow ahead of a postal strike this Friday:

1. Accept card payments. Accepting debit and credit card payments mean that rather than cheques getting lost or delayed in the post due to the ongoing strikes, debtors can pay straight away over the phone. This will not only speed things up during the postal strikes, but will ensure that businesses can maintain a steady and efficient cashflow in the long-term as well.
2. Go online. IGF also has a web-based system, i-dea, which enables customers to upload their invoices into a secure web portal. E-invoicing allows customers to see their invoice availability, load any new debtors, see whether cash has come in, check statements and view all reports. The client is then able to send over the backup paperwork in the post at a later date, thereby ensuring that the invoice process is not being hindered by the postal strikes. If you can access your information on the go, it will be easier to keep up to date, and catch any potential issues early. To help our clients with this, we have the IGF Mobile App i-dea.
3. Look into alternative delivery methods. We estimate that 80% of small businesses use the Royal Mail for sending and receiving invoices or for carrying out business transactions, so we are certainly aware of how seriously this ongoing strike could affect businesses and cashflow.
4. Make contingency plans. Put precautions in place to allow for severe delays and expect a spike in the number of clients seeking extensions to their credit facilities while they wait for cheques to arrive.
5. Look into BACS/CHAPS. Make contact with key customers to request payment via BACS or CHAPS to try to ensure that cash is still entering the business.

This was posted in Bdaily's Members' News section by Tracy Ewen .