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6 cracker ideas to drive Christmas cashflow

The Christmas trading period is due to peak mid-month. For many business owners it means big-business, and for others it means…well, tumbleweeds. Either way, there is no denying that for all operations, the festive season will bring with it some level of financial pressure.

Of course, we are also facing a host of post-pandemic challenges; economic uncertainty, crippling supply chain disruptions, job vacancies and new shopper behaviours. The truth is, Christmas 2022 is uncharted territory, set to test even the most resilient of operations.

The bottom line? Never has it been more critical to have your cashflow in order. Here are our top 6 tips to help you through the upcoming period.

1. Invoice now

Send out invoices as soon as you can, without delay. Start with those clients who have a history of being tardy, and ensure your payment terms are clear.

2. Offer discounts

Encourage clients to pay your invoices fast. Consider offering a 5-10% discount to clients who pay within 7 days, or prior to the due date.

3. Request deposits

For new projects over this period, or scheduled for the new year, request a 20-50% deposit. Particularly when demand is high and supply is low, this can help reassure the client that their job is locked in, and provides you with a welcome cash injection upfront.

4. Chase overdue invoices

It’s time to collect! If you’d prefer not to chase overdue invoices yourself, for fear of upsetting client relationships, engage a third-party bookkeeper to do it on your behalf. Ask us for a referral.

5. Consider invoice financing

One of the biggest risks to good cashflow is late payments. Invoice financing can be an ideal solution, giving you fast access to the money you are owed.

6. Reach out to your broker

If you’re anticipating any gaps in your cashflow this Christmas, you need to act fast. Talk to your dedicated broker about sensible solutions that will ensure you have your best foot forward.

“As commercial brokers, helping our clients survive seasonality is our bread and butter,” says David Crook, Managing Director of Nero Financial. “We’ll evaluate your business needs, and identify the financial solutions that will not only benefit your cashflow now, but your financial health ongoing. This doesn’t always mean a lending solution – it does mean holistic solutions to the challenges your business is facing.”

No matter what cashflow concern you are facing this Christmas period, we will work alongside you to find the right financial solution. Contact Nero Financial today or call 1300 025 949 to get the support you need, fast.