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Does The Credit Crunch Concern You?

How do you cope with customers not paying their invoices? Did you know that overdue accounts can affect your credit rating? How will you manage a sudden cash flow problem?

External finance may offer a quick answer to cashflow crises and may be necessary to help the business grow, however it does not always fix the underlying issues and in the current economic climate is harder to obtain. If companies can better manage cashflow more efficiently within their organisations; they could avoid or significantly reduce the unnecessary cost and time spent on external financing. Many simple cash management disciplines can easily be applied to bring finances under control without being at the whim of external financiers.

e-Financial Management and Lysander Enhanced Receivables Management have joined forces to give you a lifeline. We offer a unique combination of financial management advice and cash collection services.

Cashflow management is of course the lifeblood of any business. Many good businesses unfortunately fail or struggle, because they do not closely monitor their working capital and turn it into positive cashflow. Common problems, which you may recognise in your business include:

. Significant debtor balances aged beyond 90 days in your sales ledger. Is there a hardcore of debt, which never seems to reduce?

. Reduced creditworthiness. Is your business on stop and do you have to purchase goods on a pro forma or cash on delivery basis?

. Difficulties in meeting your monthly/quarterly commitments to PAYE, NI and VAT

. Paying your suppliers before your customers pay you

. Inability to get accurate and timely financial performance data

. Unsure about which products and services make you money

. Pressure from your business bankers,factoring or finance house to restructure or reduce their facilities with you

. Managing profit to maintain financial stability