Sometimes your own success can be the biggest danger. Many advisors warn businesses to be on their guard for over-trading and it remains a trap that is never far away when the economy is growing. With hard work to win new customers and continuous improvements on your product, you may receive an order which is larger than any you have received to date or an invitation to tender for a project that would double your revenue for the year.
Saying ‘no’ is the hardest part of running a business when attractive opportunities come along, especially for small businesses. Investors want to hear about growing returns and the bank wants to see revenue rising. Your employees may have bought in to the excitement of a great leap forward too.
When that situation comes along, there are several steps that can be taken to manage the risk and take advantage of the opportunity.
Trade credit insurance is one of the services that will protect your cash flow and give you greater freedom to trade. Setting up cover for major contracts or for your customer portfolio can improve your position when requesting financial support.