It’s that time of year when we traditionally make commitments to better ourselves in some way. Most common themes are giving up something for health, e.g. smoking or alcohol, or starting something, e.g. going to the gym, regular morning walks etc. Other resolution themes can include helping others or giving time and/or money to a favourite charity. In fact a recent poll conducted in the UK has found the most popular New Year Resolution themes are as follows:
- Exercise more (38 per cent)
- Lose weight (33 per cent)
- Eat more healthily (32 per cent)
- Take a more active approach to health (15 per cent)
- Learn new skill or hobby (15 per cent)
- Spend more time on personal wellbeing (12 per cent)
- Spend more time with family and friends (12 per cent)
- Drink less alcohol (12 per cent)
- Stop smoking (9 per cent)
The common theme generally is around self-improvement in some way. And of course this is the perfect time of year to think about these ideas, especially when you’ve spent the best part of a week eating and drinking to excess!
But for businesses a similar review and resolution undertaking could also prove beneficial. There are various aspects of a business’ health which could also be reviewed with a view to improvement, and a key theme for any business has to be the management of credit exposure and customer payments. Cash is the lifeblood of a businesses because quite simply if you run out of cash your business generally folds. Cash is separate to profit – you can be profitable but have no cash – and the major source of cash generation is from your customers.
So closely managing how your customers pay invoices and your overall credit exposure to customers is a vital aspect of your business. This is not always easy to do when it’s your own business and you work hard at maintaining good customer relationships. But this is where having objective professional help is key. Bizenhanz are the experts at analysing credit risks and potential customer payment problems. A Credit Review Report is a comprehensive review of your customer credit ledger that identifies potential issues and develops options for resolving these issues. No contact with your customers is involved.
Our website has more information about this report, and lots more information about credit management in general, including a sample Report. It would certainly be a good New Year start to any business to review credit exposure and maximise cash generation for the coming year.