Independently managed commercial finance company IGF is warning small firms in the UK to be prepared for cashflow shortages in the run-up to Christmas and the first few weeks of the New Year, and to ensure that they have access to a flexible supply of funding to cover the inevitable delays in payment.
MD Tracy Ewen said: “As a result of holidays, payment due dates slip as cheques aren’t signed. Having access to a flexible level of finance, particularly if it’s linked to the volume of sales, can help many business owners avoid having to resort to costly bank overdrafts or the company credit card, both of which can exacerbate their cashflow positions in the short term.”
“The problem could have an even greater impact this year as economic growth moves up a gear. The rate of growth expected over the next few months has the potential to make cashflow shortages this Christmas even more uncomfortable than during the downturn.”