Leaving freelancers off pace
Freelancers are likely to suffer cashflow problems as late payments increase during the Olympic Games according to a warning from a leading finance company.
The games, which begin on 27 July and last for more than two weeks, are likely to lead to hold-ups in finance departments around the country, IGF warned, with administrative staff set to take holiday to coincide with the event.
It’s also likely that those company officials authorised to sign off invoices will be in shorter supply, the company warned. And businesses in the South-East may be particularly short-staffed, with staff hit by travel problems during the games, or forced to work from home.
“A significant number of managing directors, clerical assistants and finance department staff may take the opportunity to take the time off as holiday leave or chose to work from home”, said Tracy Ewen, managing director of IGF.
“As a result, payments may well slow down which could cause real cashflow problems. There is also a real risk that payments won’t get made, cheques won’t get signed and small businesses will experience problems with cashflow over this celebratory period.”
Ms Ewen advised all small and medium sized enterprises vulnerable to cashflow difficulties to plan ahead for the impact of the Olympics. That means getting invoices in speedily for work completed, as well as chasing late payments efficiently. Freelancers without credit control practices in place could be particularly hard hit.
Ms Ewen warned that cashflow problems can quickly spiral. “Many business owners will have to resort to costly bank overdrafts to see them through, or, worse still, the company credit card - both of which can exacerbate their weak cashflow positions in the short term.”