Your business is profitable, order books look great, you think everything in your garden is rosy.
However, a business you have dealt with for years without a problem may suddenly start delaying payment and cannot pay your bill for one or more reasons. Even worse they go out of business. You are left with a gaping hole in your cashflow.
I have first hand experience of what affect this can have on your business. In one month alone £80,000 disappeared from my cashflow due to two companies going into liquidation. I thought this was the end of my business but by talking to suppliers etc., managed to keep the business afloat. What I found infuriating is that both these companies started trading again under new names leaving a trail of devastation behind them!!
In today’s economic climate it is essential, for even your most long standing customers, that you monitor their performance as it could keep you business afloat by acting quickly if there appears to be any changes in their situation, however small.
Cashflow forecasting can be daunting for some business owners but Legwork can help you with this to stay ahead of the game.
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