💡Getting Finance Ready: "Keeping the accounts clean".💡

When a credit team looks at your application, one item they are looking for is "Unpaid Fee" or "Referral Fee" line in a bank account. An unpaid happens when for example you have insufficient funds in the bank to make good on a request to debit by a supplier, or even worse, a finance provided 🚨👀. 5 or more in 6 months, then expect a decline. Most business owners I speak to will explain it away "yes but that went unpaid however its all paid up now", unfortunately, for the most part, this really doesn't matter, the unpaid item on the bank doesn't go away it forever will show up in the bank account!

So, here is one tip to help avoid it, simple proactive cash flow management.

Let's use a direct debit for example - The automatic process of collecting one actually starts 3 working days before the money is due to leave the account. Why is this important to know?! Well, once it starts it can't be stopped, the receiving party or the bank can't stop it! Always be looking 5 working days in advance to give yourself plenty of time for any cash flow adjustments required and avoid the dreaded "unpaid fee" in the bank.

A short term 12 month working capital loan is an option here to stay ahead of the payments. Yes you will pay the interest on the loan but better to do this than see unpaids going back to your suppliers.

Get this right, and trust me, you are on the right path!

Thanks for reading, hope you it might help you but please get in contact if you have any questions on how you we can help you get out of the overdraft hole.

Gary Grimes

Managing Director at GDG Business Finance

📧 Hello@gdgbusinessfinance.com

☎️ 01 541 5447 or 085 262 7047

💻 www.gdgbusinessfinance.com

#IrishBusiness 🇮🇪 #ShopLocal 🍀 #SMEFinance💈