Ways to Protect Cash Flow

With cash flow so fundamental to the success of any business, it’s important to be proactive in protecting cash flow rather than reactive once cash flow issues occur.

One of the most common causes of cash flow challenges is trading on credit terms. By providing goods and services on credit, cash can quickly become tied up by the need to pay suppliers and meet day-to-day commitments, such as staff wages and mortgage payments, before you are paid by customers. This problem can then be exacerbated further when customers miss payment due dates, which is so common in today’s marketplace.

While debtor protection or credit insurance safeguards businesses against the issue of customer non-payment, specialist finance facilities exist which release funding against invoices to overcome the cash flow gap associated with trading on credit. Some facilities can even incorporate both.

At Hilton-Baird, we can help your business to protect its cash flow by matching your business’s requirements with the most suitable facilities, affording you the level of cash flow protection you desire.