In this article we look at the importance of cash flow to businesses both in terms of offering a service to customers and in allowing the smoothe operation of your business.
Firstly let us look at how it can affect relations with your customers, particularly if you are in the retail or hospitality sectors.
Is cash making a return?
An article in the BBC news seemed to indicate that some people are turning back to using cash. This was partly based on feedback from the Post Office. They have been experiencing the highest demand since they started maintaining records some years ago. They put this down to more people turning to cash to help manage their budgets, often on a day-by day basis.
Link to article: https://www.bbc.co.uk/news/business-62437819
The effect on retail & hospitality businesses.
This could prove an interesting dilemma for the many hospitality businesses. This is particularly so for those that, during lockdown, converted to cashless payment processes. For many people it is it is important to monitor their ‘disposable’ income. Can they afford that ‘beer down the pub’, or eating out, going to concerts and sporting events etc.. Have you noticed how many hospitality businesses do not now accept cash. Is it time for a rapid re-think on accepting cash?
After all, if more people are reverting to cash to help them budget, cashless businesses will be excluding such people as customers over the coming months or so.
If this applies to your business, then it’s maybe time to have a re-think! If people are now treating ‘Cash as King’ then the banks need to review branch closure policies.
Does your business have sufficient cash flow?
We are all aware that having sufficient cash flow is essential for a dynamic, growing business. So, do you have sufficient? Do you have sufficient to acquire the assets you need or do the necessary marketing. Can you afford to take on the additional staff needed to meet demand.
If the answer to any or all of these questions is NO, then come and talk to us at Business Finance Services. We will carry our a free review of your business with a view to recommending options for releasing the finance that you need. Simply call us on 0800 093 5240, e-mail us at firstname.lastname@example.org or complete this enquiry form. We will be happy to offer help and advice.