How to make your cash reserves last the distance

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1. Prepare regular cash flow forecasts, including scenario planning

UK companies will experience significant pressure on cash flow in the coming months as financial support measures are gradually phased out.

Accurate and timely cash flow information will be critical in the months ahead.

2. Review customer invoicing and collection processes

As firms restart and the demand for cash increases it will be important to review end-to-end customer order and invoicing processes.

Agreeing and documenting payment terms with customers is critical and will provide clarity over invoice due dates.

3. Evaluate international trade terms to optimise cash flow

The potential impacts of Brexit could increase lead times and extend cash conversion cycles at a time when pressure on working capital is increasing.

It will be important to review contractual terms with international trade agreements to minimise the impact of any changes including new duties.