Cash Flow for Professional Services Firms
Cash flow in professional services is undermined by a deceptively simple problem: your biggest cost – your people – must be paid on the last day of each month, but…
James Harford
Working Capital in Construction: Managing Retentions and Delays
Working capital in construction is uniquely challenging because the sector has the highest days sales outstanding of any UK industry at 68 days, driven by stage payment cycles, contractual retentions,…
Working Capital Management for UK Retailers
Working capital in retail is dominated by inventory – the typical UK retailer has a cash conversion cycle of just 15 days, but that short cycle masks a constant battle…
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,…
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…