Cashflow, a worthy new years resolution

Soon it will be time for printing companies to start thinking up their new years resolutions. UK credit management company ICSM has suggested that if you make just one this year, it should be to keep a very close eye on your cashflow..

Cashflow is the lifeblood of any business. Once defaults begin and late payments are inevitably followed by non-payments you need to ensure you have the correct procedures in place to ensure survival

Our industry has one of the worst credit control histories of all, with terms often being as long as 120 days. That, mixed with ineffective claims, creates a troubling combination.
 
The recession has also prompted many printers to diversify and expand into areas including cross media and marketing in search of new revenue streams. However, this means a move away from traditional print and the usual customer base to a sector and business practices that are not so well known.
 
Companies may also be more stretched because of their broader reach so customer contact, crucial in keeping abreast of changes, may slip. Credit checking is vital to identify any potential causes for concern.
 
There will be no quick return to the halcyon days of print particularly as the recession has driven down costs and encouraged customers to look at alternative methods of getting their message across. Printers need to adapt their offering while at the same time ensuring their customers can and will pay their invoices.

So please make 2013 the Year of Cashflow Checking and ensure it is one resolution that doesn’t get broken.