How to Keep Your Cash Flowing

SANDERSON www.sanderson.com IT Software & Services WHOLESALE MANAGERS HOW TO KEEP YOUR CASH FLOWING Cash flow management can be expensive, for lots of reasons. But it doesn't need to be that way if you have the right wholesale software in place. Many businesses failed during the recession not due to poor management, but because of late or failed payments. Here, we show how widespread and serious the issue is and share the steps you can take to keep your cash flowing.. HOW MUCH DOES LATE PAYMENT COST UK SMES? Customers are exceeding their credit terms by an average of 43.4 days The average overdue debt to a business is £36k A total of £36.4 billion is overdue Source: BACS WHAT CAUSES CASH FLOW BLOCKAGE? Errors in payment processing J Late customer payments Chasing debts cost UK firms well over £700 million in 2012 % Tax payment deadlines X Bad debts Source: BACS WHAT METHODS ARE UK FIRMS USING TO CHASE UNPAID DEBTS? Incredibly, 13% of businesses say nothing can be done to minimise late payment. 29% 21 % 17% 10% 10% Regular or continuous calling Putting customer accounts on hold Relationship building Having a good credit control Clear terms and conditions and payment schedules team and process Source: Forum of Private Business/Graydon WHAT STEPS You can remove the risk of CAN YOU TAKE? blockages with active credit control: • Identify high-risk customers as early as possible Keeping cash moving through the business means preventing blockages from occurring using wholesale distribution software to • Respond promptly to late payments • Quickly spot and resolve mistakes monitor the entire process from start to finish. WHAT IS THE PROMPT PAYMENT CODE? The Prompt Payment Code is a voluntary agreement that encourages organisations of all sizes to pay on time IN 2008-2012 Over the same period, non-signatories took 1.5 days longer to pay Signatories of the Prompt Payment Code, on average, paid their bills five days faster Source: Experian Source: www.promptpaymentcode.org.uk HOW DOES WHOLESALE BUSINESS SOFTWARE HELP TO SOLVE CASH FLOW PROBLEMS? Fully integrated and real-time cash flow management tools Up-to-the-minute credit status reporting across multiple locations Prevents deliveries to customers beyond their credit limits Accurate recording of credit control activities NEXT STEPS Wholesale business software helps you to predict and prevent cash flow problems before they occur. By pulling data from across your business processes, wholesale IT solutions provide tools to highlight| potential issues, giving businesses time to respond to potential cash flow blockages. - SANDERSON Have you read our new newsletter? ss with IT Success withIT Discover the latest solutions to help wholesalers save time and boost productivity. CASH & CARRY AND WHOLESALE NEWS Regal Wholesale boosts customer Istue 1 satisfaction - thanks to Sanderson RECAL Download Now > ...........