{"id":6185,"date":"2023-11-20T15:57:30","date_gmt":"2023-11-20T04:57:30","guid":{"rendered":"https:\/\/ghr.com.au\/?p=6185"},"modified":"2023-09-21T09:10:23","modified_gmt":"2023-09-20T23:10:23","slug":"are-you-feeling-the-squeeze","status":"publish","type":"post","link":"https:\/\/ghr.com.au\/are-you-feeling-the-squeeze\/","title":{"rendered":"Are you feeling the squeeze?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">It seems like the perfect storm has hit, with rising interest rates and inflation soaring. As a result, households are dealing with higher borrowing costs, leaving them with less disposable income to spend. And that means businesses are feeling the pinch. To make matters worse, staff shortages are adding to the pressure.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Retail sales decline affects all businesses.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Almost every sector is experiencing a downturn. Building companies, property companies, retailers, and hospitality venues are facing the brunt of this decline. Credit defaults serve as a reliable indicator of this trend and so it is crucial to pay attention to this metric.<\/span><\/p>\n<h3><b>The impact of late payments on the supply chain<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Late payments severely disrupt the supply chain. When one business fails to meet its obligations on time, it causes a ripple effect, forcing others to delay their payments too. This snowball effect can lead to cash flow issues, hampering businesses&#8217; ability to plan, invest, or even operate effectively.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u00a0A single late payment might seem benign, but its impact can resonate through the entire supply chain, causing considerable financial stress and operational disruption.<\/span><\/p>\n<h2><b>Practical steps for business owners to mitigate risks<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Business owners need to take proactive steps to protect themselves from potential risks. Here are a few practical strategies they can implement:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400\">Establish credit limits for each customer and be sure to review them regularly;<\/span><\/li>\n<li><span style=\"font-weight: 400\">Keep track of any overdue payments in order to act quickly when needed;<\/span><\/li>\n<li><span style=\"font-weight: 400\">Make sure customers have all the necessary information about payment terms and conditions;<\/span><\/li>\n<li><span style=\"font-weight: 400\">Verify the financial standing of customers before offering services or goods on credit terms;<\/span><\/li>\n<li><span style=\"font-weight: 400\">Use automated invoice processing tools to make sure payments are made on time.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">By taking these measures, you can reduce their risk of getting caught in the debt spiral.<\/span><\/p>\n<h2><b>Why businesses should credit check their customers<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Businesses should credit check their customers to protect themselves from the risk of late payments or defaults. Knowing the financial health of a potential customer is invaluable when it comes to making sure you are not exposed to unnecessary risk.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Credit checking customers will provide insight into their payment history, allowing you to make informed decisions when offering services and goods on credit terms and is a valuable tool that should not be overlooked when it comes to managing a business&#8217;s financial health.<\/span><\/p>\n<h2><b>Beyond credit checks: additional risk mitigation strategies<\/b><\/h2>\n<p><span style=\"font-weight: 400\">In addition to credit checking customers, there are various other strategies that businesses can use to protect themselves from risk and ensure their financial health. One such strategy is to diversify sources of income by tapping into different markets or offering additional services or products. This will not only reduce the risk of relying solely on one customer, but it can also help bring in more revenue.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Businesses should also consider a risk management plan that includes strategies such as setting limits on credit terms and reviewing payment policies regularly.<\/span><\/p>\n<p><span style=\"font-weight: 400\">By establishing processes to protect their financials and monitoring their cash flow carefully, businesses can stay ahead of potential issues and make sure their finances remain healthy. This will help them navigate through the current economic turmoil and come out of it in a much better position.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Keep an eye on any changes in your industry and adjust your strategies accordingly. It is important to stay ahead of the curve and be prepared for whatever comes your way.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>We are here to help businesses protect their financial health. Get in touch with us today for assistance with credit checking customers, cash flow management and more!<\/b><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It seems like the perfect storm has hit, with rising interest rates and inflation soaring. As a result, households are dealing with higher borrowing costs, leaving them with less disposable income to spend. And that means businesses are feeling the pinch. To make matters worse, staff shortages are adding to the pressure. Retail sales decline &hellip; <a href=\"https:\/\/ghr.com.au\/are-you-feeling-the-squeeze\/\">Continued<\/a><\/p>\n","protected":false},"author":2,"featured_media":6241,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Are you feeling the squeeze? - GHR Accounting Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ghr.com.au\/are-you-feeling-the-squeeze\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are you feeling the squeeze? - GHR Accounting Group\" \/>\n<meta property=\"og:description\" content=\"It seems like the perfect storm has hit, with rising interest rates and inflation soaring. 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