How Much Working Capital Does a New Hire Really Require?
A new hire typically requires two to four months of their total employment cost in working capital, because you start paying their salary, National Insurance, and expenses from day one,…
2025
How to Write a 13-Week Cash Flow Forecast (With Step-by-Step Guide)
A 13-week cash flow forecast is a week-by-week projection of every pound coming into and going out of your business over the next quarter, giving you a clear view of…
Seasonal Business Cash Flow: How to Fund Your Peak Period
Seasonal business cash flow is the challenge of funding large upfront costs – stock, staff, marketing – weeks or months before the revenue from your peak trading period actually lands…
Should You Take an Early Payment Discount or Hold Cash?
An early payment discount is nearly always worth taking if you have the cash available, because the annualised cost of not taking it is far higher than most businesses realise…
Late Payment Interest: Your Rights Under UK Law
Under the Late Payment of Commercial Debts (Interest) Act 1998, any UK business can charge interest on overdue invoices at the Bank of England base rate plus 8% – currently…
My Customer Is 60 Days Late Paying – What Are My Options?
If a customer is 60 days late paying an invoice, your options range from a formal demand letter and charging statutory interest under the Late Payment of Commercial Debts Act…
Why Is My Business Profitable But Always Short of Cash?
A business can be profitable but short of cash because profit is an accounting measure recorded when a sale is made, while cash only arrives when the customer actually pays…
Working Capital Finance Options for UK SMEs
Working capital finance is any form of funding that helps a business cover the gap between paying its costs and collecting payment from customers – and for most growing UK…
Negative Working Capital: When It’s a Problem and When It Isn’t
Negative working capital means your business has more current liabilities than current assets – and despite what your instincts might tell you, that is not always a bad thing. For…
What Payment Terms Should a Small Business Set?
The right payment terms for your small business depend on your industry norms, your cash position, and your negotiating power – but for most UK SMEs, 14 to 30 days…