Successfully managing your cashflow is a basic rule of business survival but one which can be very hard to achieve. Looking for guidance? Then the Chartered Institute of Credit Management (CICM) and the Department for Business, Energy and Industrial Strategy (BEIS) have produced 12 bite-sized guides to help you tackle this. Keep your business in business.
As the world’s largest recognised professional body for the credit community, the Chartered Institute of Credit Management (CICM) are dedicated to providing support for their members at every stage of their career with their qualifications widely regarded as the industry benchmark for credit controllers, collectors and enforcement agents.
Recognised as an expert authority within the credit community they have released a free 12 Step Guide to Managing Your Cash Flow Guide. Produced in association with the UK Government's Department for Business, Energy and Industrial Strategy (BEIS), over 580,000 of these guides have been downloaded by businesses across every sector, as they offer expert bite-sized advice to keep your business in business. There are 12 Guides in the series that can be viewed below:
- Knowing your customer
- Payment Terms
- Treating suppliers fairly
- Credit Insurance
- Invoice finance and asset based lending options
- Chasing payment
- When cash runs short
- When all else fails - and the money has still not arrived
- When your customer goes bust
- Managing cash through Brexit
- Investing in equipment
Renowned British business magnate, Lord Sugar has also produced three videos for the BEIS. In these short videos, Lord Sugar explains the basic steps each business needs to follow when extending credit, from knowing your customer to getting paid. To watch the videos please follow the links below:
Amongst their other valuable work, the Chartered Institute of Credit Management (CICM) administers the Prompt Payment Code (PPC) on behalf of BEIS, an initiative which sets standards for payment and supply chain best practice.
Last year the Secretary of State for BEIS, Greg Clark, stated that he would publish the names of those signatories that have been suspended or removed from the PPC. Earlier this year 17 signatories were duly named and shamed for failing to honour their commitment to paying 95% of all supplier invoices within 60 days. The surprising list of well known companies attracted a great deal of negative publicity and of the 17 companies named, 15 have since committed to changing their payment practices, and must now work with the CICM to get reinstated.
With the risk of damaging your companies reputation and profitability the PPC is proving to be a force to be reckoned with and good news for UK business and in particular SMEs. As highlighted by the Federation of Small Businesses (FSB), 80% of SMEs are affected by poor payment practice which forces 50,000 small firms a year to close their doors. Hopefully the media backlash to the PPC offendors is a sign of change towards the late payment culture which has been prevalent for so long here in the UK.