SPECIAL REPORT | Cash Flow
bibby finAnCiAl serviCes
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Bibby Financial Services Ireland is a market leading specialist in the provision of a range of business cash flow solutions to small and medium sized enterprises across the Republic and Northern Ireland. Its product portfolio includes invoice finance and export finance facilities across a wide range of industry sectors. Bibby Financial Services itself is a global services provider, with a network of 16 operating units throughout the UK and Ireland, and companies across the world, from Poland to Australia.
If you would like to find out how Bibby Financial Services can help improve your company’s cash flow, call (01) 297 4911 or visit
www.bibbyfinancialservices.ie
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management, all of which can be very useful when compiling your analysis and forecasting, it is important to remember that the data you input needs to be up-to-date and correct.
GETTING CREDIT IN CHECK
To deliver sustainable cash flow improvement, business managers need to go back to basics and start to think about how to effectively manage their credit control and collections activities. Graham Byrne offers a simple checklist that will help you get started in handling your cash:
• Credit check your customers – always
run a credit check before entering into any business relationship. Finding out about a new customer and using credit agencies to check details is an accepted and standard business practice and one which shows due diligence on your part. Aim to only trade with companies that you know are not just creditworthy, but also have a good track record of paying their bills. It may also help to set your customers realistic credit limits.
• Be clear with Ts & Cs – if your business terms
are seven days or 30 days, make it clear. Set out your terms of trade early on so that every party knows where they stand. Include them with order confirmations and invoices to both existing and new customers.
68 InBusiness May 10
Graham Byrne, Director, Bibby Financial Services.
• Always check your invoices – avoid invoices
being returned by addressing them to the correct department and a named individual if possible, including details of the job, a purchase order number, the correct amount, your business terms and a date. Don’t give your customers an excuse not to pay.
• Send that invoice, don’t put it off – issue
invoices immediately on completion of the job and follow them up with a phone call to check if they’ve been received and that all details are correct.
• Take stock – plan ahead and don’t hold too much stock as this unnecessarily ties up your cash. Investigate the possibility of more frequent deliveries from suppliers so that stock levels can be kept to a minimum.
• Manage your suppliers – shop around to make sure you are getting the best deal. Also, negotiate longer credit terms and volume discounts to free up more cash to reinvest in the business.
• Keep the cash flowing – review your funding to ensure that it is still meeting the needs of your business. It may be beneficial to take a fresh look at the alternative solutions available such as Invoice Finance, which can help by releasing the cash tied up in unpaid customer
“it is importaNt to
remember that the
data you iNput Needs
to be up-to-date
aNd correct.”
invoices guaranteeing a flexible supply of working capital.
FUTURE SURVIVAL
Liquidity, cash and working capital are keys to the survival and growth of a business. More than ever before, Irish businesses need to manage cash and related assets and liabilities in an efficient and cost effective way in order to optimise liquidity, improve profitability and respond to ever changing market conditions. Whether your business is facing a cash flow crisis or simply wants to improve its working capital cycle and cash flow, Graham Byrne believes all business can reap considerable benefits from taking steps to improve cash flow, allowing ”owners and managers to identify where cash is being tied up and to spot potential ‘bottlenecks’, and act to reduce their impact.”
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