Is cash flowing?
According to Experian’s current late payment index, cash from your clients should be pouring into your business right now. Their figures are showing the biggest improvement in days in debtors since late 2007.
The south west comes out top with only 18 days beyond terms whilst in London things are not so good with settlement taking 27 days beyond terms. As far as sectors are concerned, the worst payers are in property with 39 days taken beyond terms on average. Remember terms are usually 30 days for many businesses so property is taking 69 days on AVERAGE according to Experian.
Have a look at the full survey at http://www.experian.co.uk/ and check the scores versus your clients to see how you are doing by sector. Remember to add your credit terms to the numbers in the survey!
As a consultant Finance Director specialising in creative, marketing and professional firms I suspect that you may see that your clients are performing worse than the survey is leading you to expect.
There are a number of reasons for this, but don’t lose heart, there is actually a great deal that you can do to improve the speed with which you can turn work done for clients into cash in your bank by improving your internal procedures.
Engage in the debate with financial management advisor John Toppin MA FCA and strategic advisor and business coach, James Cooke.
John Toppin is a specialist consultant finance director and ned for marketing,creative and professional firms.
You can check my credentials at http://www.linkedin.com/in/johntoppin
You can read my personal blog at http://finance-director.blogspot.com/
John Toppin at www.nomizon.co.uk
James Cooke at www.jamescookecoaching.com
