Manage cashflow and access finance

Prevent late payments

£18.6 billion is the figure put on outstanding payments owed to Britain's small-to-medium sized enterprises with the average amount owed to a small and medium sized business at any one time being £30,000.  It is not surprising then that 10 per cent of all business failures are down to non-payment.

It is likely that you have seen an increase in payment times from invoicing to full payment recently. Late payment of invoices can cause cashflow problems, lead to reduced profits and take up valuable staff time chasing payment.  By knowing your customers from the outset, investing in credit insurance, managing invoicing efficiently and agreeing payment terms you can avoid these problems. See our guides to preventing late payment and recovering late payment. 

The Institute of Credit Management has produced guides to help with late payments. Download the guide to payment terms (PDF, 1.9MB) - Opens in a new window and download the guide to chasing payment (PDF, 658KB) - Opens in a new window.

Know your customers

Unless you know exactly who you're trading with, you won't be able to check if they are good for the amount of credit you may need to grant, you won't be able to invoice them correctly, and it may be difficult to commence legal action effectively if it becomes necessary. Download the guide to knowing your customers and get top tips from the Institute of Credit Management (PDF, 816KB). - Opens in a new window

Credit Insurance

If a customer becomes insolvent and cannot pay money that is due to your business it can be catastrophic, especially if the amount involved is large. Insurance companies and brokers offer Credit Insurance to meet the specific needs of clients, industry sectors and specific transactions to protect against non-payment by your customers and their insolvency. Download information about credit insurance and get top tips from the Institute of Credit Management (PDF, 854KB) - Opens in a new window.

Invoicing

If you don't raise an invoice, you won't get paid. Invoicing should not be seen as a back-office administrative nuisance. Rather, it is a vital first-step in achieving healthy cashflow. Download information about invoicing and get top tips from the Institute of Credit Management (PDF, 580KB) - Opens in a new window.

Subjects covered in this guide

• Introduction
• Understand the essentials of cashflow management
• Manage suppliers
• Prevent late payments
• Debt factoring and invoice discounting
• Access sources of funding and finance
• Avoid insolvency and bankruptcy

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