The period after the new year can be a quiet time for businesses, which means that it might be a good time to take a good look at your cash flow situation.
Cash flow is critical to every business. If you don’t have enough cash, your business is at risk – according to the Office of National Statistics, cash flow issues account for 90% of business failures in the UK.
However, it is not uncommon for businesses with plenty of cash to go bust due to poor cash flow management. By improving elements such as credit control, inventory management and controlling the rate of expansion effectively, these businesses would still continue to be profitable.