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Cash Flow Management

Cash Flow Management

How many people keep telling you that cash management and cash is king, and how this is more important than anything else? I would actually include myself in banging the drum of holding onto cash and being extra vigilant when it comes to credit control.

However there are 3 things that I think are important in this message which can be lost if we are not all careful:

The first is we all have to make sure we pay our suppliers efficiently and on time, so as to protect our supply chain. I know over this crisis Chase & Holland are proud to have made sure we have paid on time or ahead of time. In addition I have to say our clients have been mostly amazing in paying to agreed terms.

Secondly, if you can’t pay on time or have a query, communicate with your supplier. It is amazing how human people can be. We have had a couple of clients that have needed our support and as long as we know why, how and what the plan is, we can help. From experience this is the same story throughout the supply chain.

The final point which is so important, is don’t forget in order to develop and grow, the cash you have stock piled will need to be used (all be it wisely and maybe not all). I have found myself recently spending maybe too much time trying to grow our cash position instead of focusing on growing our business out of the COVID-19 crisis. I think there is a balance and now is the time to invest in further development of the business and assist with the starting of the economy.

We all have our parts to play over the next 12 months in rebuilding our economy better and more mindful than ever before. I think with the right mindset this is an awesome opportunity for all of us.