With many UK firms closing down for at least a week during the Christmas season, Lloyds TSB Commercial Finance is urging small- and medium-sized enterprises (SMEs) to begin planning now to avoid facing financial difficulties over the festive period through late payment and outstanding invoices.
Ted Ettershank, managing director, Lloyds TSB Commercial Finance, explains: "Late payment is a serious problem for Britain's businesses, and it can be exacerbated by the Christmas break. Even though sales soar, many goods are supplied on credit with payment not coming through until long after the holiday is over. Difficult though it is, I would urge businesses to remember that a sale is not a sale until it is paid for and late payment can cause as much damage as no payment, so make sure you treat it seriously."
Lloyds TSB Commercial Finance offers the following advice to help companies avoid a post-Christmas cashflow crisis:
Existing customers:
