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Minimising cashflow issues

There is no doubt that we are living in challenging and uncertain times. We are all worried about the possible consequences COVID-19 could have on our health and wellbeing as well as our friends and family. Unsurprisingly, the virus has had and will continue to adversely affect our economy too.

As the virus spreads further, the pressure on businesses and the strain on cash flow will be felt across the world. With the current restrictions being imposed by the government, many businesses will be forced to suspend operations or find alternative means of working. 

If your customers are in financial difficulty and become unable to meet their financial obligations to you, it will be important to react to those issues quickly. 

Communication 

This is always key. It may be that you can look to restructure any payment arrangement , which would allow you to maintain your own cash flow and your relationship with the customer. Record any agreement in writing, so that all parties are clear on what their obligations are. 

Obtaining security 

If the debt is significant, or if you feel unsure about your customer’s long-term financial position and the likelihood that they will be able to meet their payment obligations, you could look to obtain some additional security.

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Stephens Scown

Stephens Scown

Stephens Scown
You can turn to Stephens Scown for help in your business, financial or family life. Sometimes it might be with an opportunity, sometimes a problem. Either way, you know you’re guaranteed friendly, honest and professional help from a team of legal experts who always have your best interests at heart. It’s a refreshing approach to law which has seen us forge long-lasting client relationships, some stretching back more than fifty years. Being passionate about the South West means we specialise in industries common throughout the region – food and drink, tourism, mining, green energy and more. But we also help a wide range of businesses with their day to day corporate and commercial affairs, from leases to employment, debt recovery to insolvency. And we’re there for those tricky moments in your personal life too – home moves, separation, employment disputes and more. With 270 staff and 50 partners across our three offices in Exeter, Truro and St Austell, we’re a law firm with a regional focus but all the benefits of a big city rival. No wonder legal industry bible Chambers describes us as a ‘dominant force’ in the marketplace, and we feature in The Lawyer magazine’s prestigious Top 200 rankings. You’ll start to feel the benefits of working with Stephens Scown from the moment you get in touch.