29 April 2021
Thore Vestergaard, Managing Director, Commercial Payments, Allstar Business Solutions talks about how to manage company payments after lockdown.
1. Review and validate your suppliers
To ensure you are ready to ramp back up your business activities, review and validate the working capital solutions your business relied on before the pandemic to ensure you can still rely on them.
Suppliers, banks and other providers are also reviewing their costs, business models and working capital needs as they get out of lockdowns – and that means there will be change. So check your trade accounts with your suppliers.
2. Check your bank’s terms haven’t changed
You bank is obviously key in supporting you as your business recovers, so do make sure you keep a good dialogue with them.
Check your bank overdrafts and other bank products that you used to rely on to ensure the credit lines are still there, and that the pricing is still reasonable. Consider if there are other products you could benefit from, such as business credit or charge cards, that gives you free working capital and helps getting your business back on its feet. Also scan the market for alternative providers.
3. Ensure employees have the right payment tools
Ensure your employees, who may be a mix of new and old staff, have the payment tools needed at their disposal to get on with business in the new normal.
Make sure you are able to pay immediately, getting the best prices with a secure payment card.
When you go back on the road, keep employees safe by removing cash from the process and reduce paper handling by digitizing receipts automatically.
Ensure your employees are not out of pocket by making them pay for businesses expenses when times are hard for them too: support their mental health by taking the stress out of expenses and release them from funding the business’s working capital.