Banking advice on how to deal with Christmas

Steve Hand, area director of the South East for SME global transaction banking, has warned that Christmas can put enormous pressures on a firm’s cash flow.

Steve said: ‘The surge in demand for products and services during the festive period can make it increasingly difficult for firms to fund the extra stock, raw materials and staff needed to get through the holiday season.

‘With payments often even slower during the festive period, businesses can find their cash flow squeezed at both ends.

‘We already know that businesses were under increasing pressure to manage their working capital even before the Christmas rush began.

‘Every pound that is tied up in working capital is a pound that cannot be used to invest back into the business, therefore having the procedures in place to manage this is vital during the holiday season.

Steve said that knowing what funds were available and seeking advice were the key to surviving the season.