However big your business, cash flow is critical to survival and success. Whereas larger companies may have sophisticated in-house credit management teams to help them, smaller companies are often so focused on the day-to-day challenges of running their business that cash flow management can sometimes be overlooked.
Experian analysis of invoices submitted to four FTSE100 companies shows that many were submitted late, many were deficient, and many were both late and deficient. Ensuring effective management of customer relationships, invoicing and cash flow can make a huge difference to profitability.
This series of guides, developed by the Institute of Credit Management for the Department for Business, Innovation and Skills, in partnership with the UK’s leading business representative organisations, is designed to provide simple and practical support to help businesses help themselves through these difficult times. Individually they provide straightforward and speedy advice with simple checklists and top tips. I hope you find them useful.
Michael Fallon MP, Minister of State for Business and Enterprise.