The post-festive season is upon us, and it doesn’t come bearing gifts. During the three months following Christmas, businesses often experience delayed payments and a strained cashflow, leading to 1095 insolvencies in March of last year.

Unfortunately, there is no single factor to blame. With summer holidays, absences of key staff and fewer trading days in December/January, people aren’t getting paid, and therefore neither are their bills!

If you hadn’t prepared in advance for the tight months, there are still some tips for your business to maintain control until the money starts rolling again:

- Try to get through to your larger and prompt-paying customers first. Consider offering a discount for early payments so that you have some cashflow.

- Assign someone to the phone to contact all debtors. This way, you’ll be at the front of the line when bills finally start getting paid.

- Minimise inventory replenishments and buy only what you absolutely can’t live without for the next 2 months.

- If you can’t make your payments and are unable to postpone, consider finance options, such as invoice financing, to get you through until the cashflow resumes.

Remember, this is bumpy time for most SMEs, so your best bet is to run lean, keep on top of your debtors and maintain the good standing of your business.