Latest News

How Poor Cashflow can Damage your Business

A survey from 2016 found that 54% of SMEs in the UK find that cash flow is the biggest obstacle to their growth. By having poor cash flow, you could be causing your business a number of problems that could be avoided.


Paying Suppliers

By not paying your suppliers you are ruining your relationship with them which then damages your reputation if it carries on. Due to not paying suppliers you won’t be able to meet your own business deadlines, overall slowing down your business’s growth.


If you don’t pay your debts on time your ability to get credit in the future and your business’s credit score. If you continue not to pay your debts then you might face legal action, or even insolvency.

New Inventory

If you can’t pay for new inventory, then your business might struggle to function, or even grow if there are certain things you need to buy to keep your busy growing.

Losing Contracts

You might lose your contracts if you can’t pay your suppliers, employees or debts. Your reputation might cause you to lose contracts, or even your credit score if you are in a lot of debt.


A lot of cash flow problems for small businesses are caused by late payments from clients. By reducing the risk of your invoices being paid late then your cash flow problems should start to stop. Here’s how to get your invoices paid on time…

Credit Check: Make sure you credit check all of the clients before you start working with them as it will give you an indication of how likely they are to pay you on time. It will also show you any financial difficulties they might be having, as well as their previous payment behaviour.

Payment Terms: Before and commitments are made make sure the client knows what is expected from them as this could prevent any potential confusion or arguments in the future.

Good Business Relationship: If you have a good business relationship with your clients and suppliers then it will be easier to get the best deal as possible.

Added: 04 Apr 2019 12:42

Back To Blog