A guide and checklist, designed by experts to keep your cash flow healthy.

Rising living costs and changes to individual and company taxation means the current tight margins and profit are being dramatically squeezed even further causing liquidity and cash pressures on business.

Many of today’s business in the UK are struggling to keep cash flowing due to circumstances outside of their control.

UK Business minister Paul Scully was quoted as saying “we can’t save every business”. This is the latest in the series of blows delt by the government as a result of COVID-19 pandemic to small business and SMEs across the UK.

There are plenty of resources to turn to if you are looking for a way to strengthen your financial resilience, but first let’s look in-house to see what can be done quickly, and at low or no cost.

Cash flow difficulties arise from many things, but in summary it’s usually down to a few key issues:

·      Failing to do cashflow projections such as 4,8,12 week forecasts.

·      Failing to have transparent conversations with customers and suppliers.

·      Companies being forced to allow delays in being paid leading to suppliers under further pressure.

·      Poor administration allowing easy excuses not to pay you.

·      Lack of understanding of debtors/creditor days calculations.

·      Failing to have water tight terms and conditions.

·      Failing to work together so all parties can continue.

·      Failing to proactive plan cash flows.

All of this impacts your own financial position and could put you in turn at risk of defaulting on a payment.

Craig Martindale, MD of Credit Control Management Services says “There is plenty that can be done by credit teams and individuals within business to safeguard their finances and ensure they are paying and being paid on time. As staff become overstretched, burnt out or unwell, pressure is placed elsewhere in organisations and often resulting in in experienced staff being tasked with the management of credit control systems that are increasingly under strain. Simple checks and measures to ensure operations are effective can make a significant difference to your bottom line, staff wellbeing and business relationships”.

There are a few key things you can put in place to ensure you are prepared and in a strong position to keep your cash flow healthy:

·      Credit checks

·      Monthly credit limit reviews

·      Updated terms and condition of service

·      Contracts updated and signed

·      Multiple access to contacts like accounts, purchasing, directors.

·      Quality administration from PO received, to Sales invoicing to proof of POD and service delivery to ensure you can get paid.

·      Close and regular contact with that customer or client

·      Disruption to your existing credit control team (maternity leave, illness etc).

·      Prepare for the unexpected in both your critical chain analysis and sub level impacts

What tools are available to help me keep credit control processes robust and reliable?

Credit checks

Use credit sage, experion, riskdisc with 100% monitoring services

Updated terms and condition of service

Make sure these are up to date and legally enforceable. Key area omitted are retention of title clauses, storage charges, penalties.

Contracts updated and signed

Using software like docusign can make this process very easy, or visit the customer and go through directly as part of the engagement process.

Regular contact with that customer or client

Ensure you build rapport with customer and really understand their pain points. I would rather talk to someone who is transparent, engaging than someone who is dreading or avoiding my calls. Ensure you are really there to help or hand over to CCMS where we ensure the relationship is kept in positive manner where many customers like to talk to us directly as the relationship with customer-supplier becomes strained.

Closure of business

Be aware of the warning signals. Constant delays, avoding calls, emails, credit checks showing high numbers of ccjs, directors leaving.

Disruption to your existing credit control team (maternity leave, illness etc).

We live in a world where individuals have to put themselves first rather than the company, where we can really help step in, continue credit control until the maternity, paternity leave or sickness ends.

Company solvency

Download the company accounts from Companies House to see if they are solvent. Also look for connected parties as this will provide an indication as to their previous behaviour and financial position.


We are committed to working with SMEs to ensure they are stable and in a strong position to grow. If you would like to know any more detail about the points we have raised, just get in touch. The team are on hand to provide support or advice.



01245 976 716

You can also request a FREE 30 minute consultation to explore what challenges you have, and immediate solutions to get you back on track.

Learn more about us at www.creditcontrolmanagementservices.co.uk