As we are all well aware, the novel covid-19 epidemic is causing businesses all over the world to experience major falls in demand for their products and services, as well as disruptions to their supply chain. Navigating through this time wisely may be the make or break for any business and spending some time focusing on cashflow management will be beneficial.
Consider creditor management, and how a positive relationship with your suppliers creates positive outcomes. Things to consider before you delay payments to your suppliers:
– Your relationship. Trust and respect is earnt over time. Work together.
– Your credit facility. Most if not all customers have a pay by the 20th or end of month facility with their supplies, use it but don’t abuse it! Support each other.
– Get Financial help. Get through by protecting and supporting your staff, your business and the economy by checking out the Business Finance Guarantee Scheme. Do you qualify?
– Think ahead. If urgent supplies are required and your account is on hold because of delayed payments, this will affect your business income and workflow when you need it the most. Communicate effectively.
– After Lockdown. Check in with your relationships. Your suppliers, your Competitors and your Employees. Collaborate for a success outcome.
It is without a doubt, keeping in touch is more important now than ever – communicate, communicate, communicate!
Links that you may find helpful:
Joe Kaleb, a chartered accountant has tips on managing your cashflow through the covid-19 crisis.
View his tips here.
Tax Management New Zealand have a general Cashflow Guide that you may find helpful, especially during times like these.
View the Cashflow Guide here.
