Spot Cashflow Problems Early
Now is an ideal time to get your business finances in order. And if there’s one thing that can quietly derail even the most profitable business, it’s cashflow problems.
While surprises are welcome over Christmas, finding yourself short of cash is one thing your bank manager won’t appreciate. That’s why identifying potential cashflow issues early, before they snowball, is key to business survival.
At this time of year, it’s common to hit a cashflow pinch point. Maybe you’ve taken some well-earned time off. Invoices haven’t gone out. Or your customer’s accounts team has been on holiday too, so your payment is still sitting in limbo.
If that sounds familiar, here are five simple tips to keep your cash flowing and avoid problems down the line.
Build a Cashflow Forecast
Even if your business is profitable, profit doesn’t equal cash. You can’t pay staff or suppliers with good intentions.
A cashflow forecast helps you plan for the peaks and troughs. Start with the next 90 days if 12 months feels overwhelming. List every known cost, both fixed and variable, and factor in realistic income, including when customers actually pay (not just when you invoice them).
Keeping an eye on your working capital allows you to catch cashflow problems early, before they affect operations.
Review Outgoings Regularly
Just like with your personal finances, review your business payments frequently. Are there subscriptions, software licences or services you no longer use? Could your utility or lease agreements be renegotiated?
Even a 10% saving on your outgoings could significantly improve your cash position. Consider smoothing cash demands by switching to monthly payments, or asking suppliers for early payment discounts.
When was the last time you reviewed your supplies or asked for better terms?
Speed Up Invoice Collection
You’ve done the work, provided the service—but until the money hits your bank account, your job isn’t done.
Late payments are one of the most common causes of cashflow problems. Make sure you:
Send invoices promptly
Clearly state your payment terms (e.g., “30 days”)
Chase overdue invoices quickly
Spot patterns with slow payers early
If a customer’s payments start slipping, it may be a sign of their own cashflow struggles. Set credit limits and speak with them early, before a delayed invoice becomes a bad debt.
Keep Stock Lean and Efficient
Stock sitting on shelves is money that’s not in your account. Regularly reviewing your inventory can free up working capital and stop you from over-ordering slow-moving items.
Run seasonal promotions to shift old stock. Focus on high-turnover items. An efficient stock system supports better cashflow management and avoids unnecessary capital being tied up in your storeroom.
Explore Alternative Business Finance
We all know the phrase: cash is king. But it doesn’t always have to be your own cash.
Access to flexible finance can help your business ride out short-term gaps. You don’t need to rely on a traditional bank overdraft—today’s market offers:
Invoice finance (including single invoice discounting)
If you’re already facing a squeeze, don’t bury your head in the sand. There are practical funding solutions out there.
Need Help With Cashflow Problems in Yorkshire?
If you’re based in York, Harrogate, Hull, Sheffield or anywhere across Yorkshire, we’re here to help.
At Pinpoint Finance, we take time to understand your business. Whether you need a short-term funding boost or help managing overdue invoices, we’ll work with you to create a plan and take care of the paperwork, too.
📞 Call us on 01904 866 100
🌐 Or visit pinpoint.finance to book your free business finance consultation
Let’s get your cashflow back on track, so your business can keep moving forward.
