Chasing unpaid invoices is never a particularly enjoyable part of business but it can be more stressful during the festive period. However, it’s important that you collect any debts that your business is owed before Christmas.
Many businesses close over the holidays and do not reopen until the New Year. This means that if you don’t get your invoices paid now, you could be waiting until mid-January.
You may feel uncomfortable chasing unpaid invoices just before Christmas, but don’t let that deter you. It is money that you are owed.
Unfortunately, around Christmas time a lot of companies do go into liquidation or cease trading. This would make your attempt at getting an invoice paid far more difficult, if not impossible. So it is crucial to get your invoices paid as soon as possible.
Also, you don’t want to be one of those companies that goes bust around Christmas because you’ve not had your invoices paid.
Tips on dealing with unpaid invoices during the festive period
Simplify the process
Some customers delay payment, not because they don’t have the means to pay you, but because the whole process is complicated. If you make the payment too arduous, your customers are likely to delay paying you. Online Direct Debit payment systems are a great way to simplify the process.
Chase all outstanding invoices
If you have any outstanding invoices that are now due, chase them up to ensure they are all paid before the Christmas shut down.
Be firm and polite
You can be firm with your customers but always do it in a polite and courteous way. You might even want to offer your customers a small discount as an incentive to pay before the festive period begins. You will be getting slightly less than you want but if every customer pays, it will ensure you have enough cashflow to see you through until the New Year.
For more advice
Cashflow problems can occur for a business at any time of year, but they can be particularly detrimental to a company around the Christmas period.
If your company is experiencing cashflow problems, you can talk to our advisors here at Clarke Bell. We are Licensed Insolvency Practitioners and business restart specialists who will give you friendly and professional advice.
Contact us today 0161 907 4044 / [email protected] for initial, free advice with no obligation.