Preparing Your Business For the Summer Slowdowns

Did you know that around the same time every year, a huge number of UK businesses will notice a significant slowdown in payments? And that slow period is coming up very soon? Of course, it’s summer! While we know it already feels like summer with these heatwaves, the full summer months create a perfect storm for delayed payments in B2B businesses. It’s something most businesses experience, but a lot don’t understand or really plan for, which means more stress, more cashflow issues and less stability.

Understanding the Seasonal Bottleneck

There are a lot of things that come together to create the summer bottleneck. Some you might have thought about, others that might not have crossed your mind. For example, a lot of employees with children will be looking to go away during the school holidays (there are even hack guides out there to help parents make the most of their holiday entitlement during this period), and even those without like to book time off in the summer to enjoy the nicer weather.

For businesses, this is already a difficult thing to manage, as they need to balance staffing to keep things running. But for their customers who are waiting on invoices to be paid, it means that:

• Key contacts are away
• Approval chains become fragmented
• Invoices that would normally be processed in a few days are left sitting in inboxes

Because there are fewer staff in the office during this time of year, priorities shift, and invoice processing often takes a back seat. So the payment cycle slows down, and businesses start to feel the cashflow problems.

What Does this Mean for Your Business

At first glance, a few delayed payments might not seem significant, especially if they do actually get paid in the end. But as more and more customers delay payments, the effects build up. When that happens:

• Financial forecasting becomes less reliable
• Operational decisions need to be adjusted
• You end up relying on reserves to get by

That short-term delay can escalate quickly, and the pressure it causes brings its own challenges.

How Can You Prepare?

The thing to remember is that this isn’t a random disruption. It’s a consistent and predictable seasonal pattern, and it affects businesses across all sorts of industries. So rather than struggle through it, take some proactive steps to get through it this year.

The best way to do that is through proactive credit control. By taking action now, rather than when the payments start slowing down, you can keep payment momentum going even when there are delays from seasonal slowdowns. Start by reviewing your outstanding invoices now, ahead of the main summer period. Reach out to customers and confirm the payment timelines, and make sure any documentation needed is accurate and accessible. Be clear, professional and cheerful about it. You’re not trying to chase up invoices that aren’t due yet – you’re just trying to make sure you stay on the radar.

You should then have a consistent follow-up strategy for every client. Regular check-ins mean you can catch issues quickly, and be made aware of things like holidays your contacts may be taking and who to speak to instead. Keeping a structured approach here means that customers know what to expect, and means your invoices won’t be overlooked or deprioritised.

Remember, credit control shouldn’t be a reactive function. It should be a proactive part of your business that supports your clients in getting their invoices paid on time, every time.

A Little Helping Hand

If you’re struggling to do this yourself, whether that’s in general or because your finance teams are all taking holidays, sometimes having an external support system can help. At Debtcol, we don’t just provide debt collection services. We have 12 years’ experience in credit control, business investigation and process implementation, all of which is at your fingertips. When you work with us, we’re on hand to help you put systems like this in place to protect your cash flow and proactively manage your business finances. We work alongside finance departments, taking on some of the more time-consuming tasks, like regular chasing, so that they can focus on what they do best.

If you’d like to know more, get in touch with the team today, and we’d be happy to arrange a free consultation so you can review your options.