A happy cash flow Christmas - 5 golden rules!

Credit Management, Jan 2007

Coface UK is urging businesses to plan ahead for the Christmas period to ensure that they get paid on time. They have put together five golden rules to help keep the cash flowing during the festivities.

* Many businesses close down over Christmas, so plan ahead to avoid delays by checking your customers' opening hours and invoicing early if necessary.

* The Christmas post can delay mailed cheques, so consider setting up electronic transfers for major clients, or collecting payment in person instead.

* Take action on overdue accounts now. Companies are likely to be under pressure from other creditors in the New Year.

* Beware of new customers seeking large credit facilities over the busy Christmas period and continue to credit check them thoroughly, using a credit information agency if needed. If you are in any doubt ask for part or full payment in advance.

* Review your growth target for 2007 and see if you need extra finance to fund it, and credit insurance to protect it.

Dominique Vaughan Williams, Marketing Director at Coface UK comments: "The festive season can bring good business but can also play havoc with your cash flow as customers close for the holiday and cheques get delayed in the Christmas post. To protect yourself from late payment, continue to implement strict credit management procedures throughout November and December. By planning ahead, you can make sure that unpaid invoices do not become a New Year hangover."