By Daniel Hunter

Unlike the weather, the economy certainly seems to be showing continued signs of improvement. However, as we approach Christmas 2014, it would be a mistake to start popping those champagne corks just yet, according to commercial finance business, IGF. The festive slow down can often hinder growth plans for companies waiting on capital from invoices.

IGF is warning small businesses that they should view the run-up to Christmas and the first few weeks of the New Year as a time to be extra prepared for cashflow shortages.

Tracy Ewen, managing director at IGF, said:
“The Christmas period and the first weeks of January are often a critical time for small businesses — almost as many managing directors, clerical assistants and finance department staff are on holiday at this time as during the summer.

"As a result, payment due dates slip as cheques aren’t signed and small businesses often experience real problems with cashflow. Christmas may be the giving season, but don’t expect all of your suppliers to pay on time!

“At this time of year, having access to a flexible level of finance, particularly if it’s linked to the volume of sales, can help many business owners avoid having to resort to costly bank overdrafts to see them through or, worse still, the company credit card, both of which can exacerbate their cashflow positions in the short term.”

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