Excitement about Christmas starts earlier each year. Leaving many people with a “good excuse” for all sorts of unfortunate behaviour!
From taking longer “liquid” lunches, to using sick days for shopping, and trying to wiggle out of making debt payments. Christmas is undoubtedly the prime time for organisations and individuals to give you all sorts of excuses and pleas, to avoid their financial commitments.
After all, we would all like extra cash to spend, on festive treats, outings and gifts!
Debt becomes bigger post-Christmas
The problem is, that Christmas doesn’t include a magical trapdoor to escape financial agreements. In fact, avoiding payments can leave personal and business debtors in deeper trouble. For example, anyone who likes to bet on racing could have even more free time to gamble over Christmas.
According to the UK charity National Debtline, 7.9 million people were falling behind with their finances in January 2018, after festive overspending. (source: The Independent) This is also the season for business debt to potentially grow. Christmas downtime leaves firms fighting to stay on top of order books, causing cashflow issues in January.
The knock on effect can be serious if you start 2019 tackling customers who can’t or won’t pay you promptly. A report earlier this year concluded that 58% of small businesses in the UK are already in peril thanks to having to chase late payments. (source: Real Business)
Tough to be firm
Does chasing debtors and keeping on top of credit management during the run-up to Christmas make you feel like “Scrooge”?
Getting prompt settlements and instalments can be tough at any time. If your debtors use Christmas to request unacceptably flexible terms, it becomes even harder. It can feel easier to let things slide, so you don’t end up on “Santa’s Naughty List”!
The reality is, whatever the time of year, the wheels of business need to keep on turning. And outstanding debts still need to be paid. Particularly as coming up short on your revenue could leave you with a New Year “headache” of the financial kind!
Specialist services for financial good “elf”
To keep your revenue in good “elf” over Christmas (and the first quarter of 2019) you need to act now. Nightfox Investigations can swiftly get up to speed with your debt collection projects. Including helping you to tackle late payments.