Seven tips to manage your cash flow over Christmas

The Christmas holidays can be a challenging time for a business's cash flow, because expenses can rise, income can fall and it can be hard to respond to emergencies when so many people are on leave.

With that in mind, here are seven tips to help you manage your cash flow over Christmas.

Do a cash flow analysis. This will give you an indication of how your cash flow is likely to be placed during December and January.

Send invoices early. Clients can be more careless about paying invoices between mid-December and mid-January, as their thoughts – and payroll staff – may be elsewhere. Invoicing promptly will help you maximise your income during the holiday season.

Speak to your suppliers. If you think cash flow is likely to be tight, it might be worth asking for an extension on any imminent bills.

Trim fat. Scrutinise your upcoming expenses. Chances are, you'll find some costs you can cut without making a material difference to your productivity.

Plan your staffing. Calculate how much work you're likely to do over the holidays and therefore how much labour you'll need. That way, you won't be paying workers to twiddle their thumbs.

Plan your stock. You should also carefully calculate how much stock you'll need over the holidays, so you don't over-order.

Get a business loan. This could be a smart way to protect your cash flow. You could use the loan to cover short-term expenses, to make sure you don't run out of cash over the holidays. You could also use it as an insurance policy – a ready source of emergency cash, in case something goes wrong over the holidays and you need fast finance at a time when lenders might be closed.


Contact me today if you’d like to organise a business loan or revisit your current loan structure. With Christmas just around the corner, the sooner you act, the better.

Published: 4/12/2023

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