SOURCE: Bibby Financial Services

Bibby Financial Services

January 14, 2011 11:50 ET

Bibby Financial Services Offers 10 New Year's Resolutions for Small- and Medium-Sized Businesses

Ready Your Operations for Improving Economy in 2011

CHICAGO, IL--(Marketwire - Jan 14, 2011) - "For small and medium-sized businesses, now is the time to establish and stick to some New Year's resolutions that will improve their operations and prepare them for growth," said Leigh Lones, CEO, Bibby Financial Services, North America.

"The main goal is to manage cash flow more efficiently," Lones said. "With some forward thinking and planning, businesses can implement important changes to their operations to improve their bottom lines. These New Year's resolutions can set the stage so companies can achieve better performance in 2011."

10 New Year's Resolutions for Businesses

1. Pay your employees first, they are your highest priority and don't forget the IRS -- keep current with payroll taxes.

2. Pay attention to the credit worthiness of your customers so you are confident you will get your money. Remember a sale is not a sale until you have been paid.

3. Limit the amount of business you do with any one customer so you aren't left penniless if they run into trouble and are unable to pay.

4. Bad business is worse than no business. Customers who fail to pay their bills on time should not be your customer any longer.

5. If a customer becomes undependable, change the terms to COD (cash on delivery). That way you can keep the customer and avoid the uncertainty of payment.

6. Keep an accurate and complete audit trail. Don't do business on a handshake when the future of your company could be at stake.

7. Keep management accounts and use financial reporting. Plan how you will pay your expenses, rather than paying bills based on how much is in your checking account at that moment.

8. Cash flow counts. Focus on shortening terms with your customers and structure the pricing to coincide with those terms. If you wait 90 days to be paid that means you are financing your customer's business. Or, if you give extended terms, get paid more.

9. Think about establishing a lending relationship when you don't need financing; that's the best time to ask for money. Then follow the financial reporting requirements. Make it easy for the financial institution to lend you money.

10. Explore alternative lenders. You will probably be surprised to learn what's out there. It can take time to find financing sources. Do your homework and get all of your questions answered.

Bibby Financial Services is a worldwide market leader in business cash flow solutions to small- and medium-sized companies. With offices in eight North American cities and 13 countries around the world, its product portfolio includes accounts receivables finance, factoring, export finance, purchase order finance, specialist solutions for the staffing and trucking sectors, and it is an approved lender for the Export-Import Bank's working capital guaranty delegated authority program. Bibby Financial Services is a subsidiary of a 203-year-old privately held company based in the United Kingdom.

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Contact Information

  • Stacy Gaylord
    Bibby Financial Services