News & Insights
Plan now for January payment delays
Mark Gardner, Partner at Latimer Hinks Solicitors is advising business owners that planning now can help avoid cash flow problems spoiling a Happy New Year.
The timely warning comes as many businesses prepare to close down for the Christmas break. Upon return from the festivities, many firms will find customers’ payment schedules disrupted in January.
The break makes January a shorter month, compacted by business owners dealing with correspondence and bills that have arrived over the festive shutdown.
“Forward planning for a stable start to 2011 is vital,” said Mark Gardner.
“January is a notorious month for slowness in payment. With many businesses closing down over the Christmas period, January normally starts late and begins with a backlog of work and bills.
“For many businesses, a hold-up in payments can cause real cash flow problems and could even prove critical. Therefore, it is important to plan ahead and ensure that if the funds are available now, then serious consideration should be given to putting money aside to cover such delays in January.
“If the proper planning is put in place, businesses can make a stronger start to 2011 and hopefully stand a better chance of a successful year in tough economic conditions.”
Mark, an experienced practitioner in debt recovery and management, added: “A Happy New Year can be even happier when a business is in good shape and ready to face the challenges ahead. It will also help you to close down for Christmas feeling more confident for 2011.”
