Every business must ensure they have enough working capital to help with the efficient running of their company. It is all to common for a business to show signs of overtrading, which could lead to insolvency. Here are a few tips to avoid this happening.

• Ask your suppliers for credit
• Try asking your customers to pre-pay for any goods or services you supply.
• If this is not possible, offer your customers a discount for prompt payment. This will encourage customers to pay early.
• If you find yourself in financial difficulty, it is possible to go to your bank for a loan. You will need to present them with a business plan. But be aware, they may ask you for a personal gurantee, which could involve a collateral security against your home. Therefore, be very confident in your business plan, before putting your personal assets at risk.
• If your company is unable to provide security, it is likely your bank will not be willing to lend the money. If this is the case, try getting finances from elsewhere, possibly from someone who already has an interest in the company, for example, a customer or supplier.
• Lastly fund your financial situation with a credit card, although this is not recommended.

Here at CJS Credit Control Services, we aim to provide a local cash collection service for all businesses.   Do not hesitate to contact us if we can help