BREXIT and cash flow issues

Having just attended the Bank of England briefing at Greater Birmingham Chamber of Commerce someone raised a really a good point that is worth sharing. There could be cash flow issues from a no deal BREXIT for businesses.

BREXIT is obviously high on the agenda and there was lots of talk of preparation and the spectre of a no deal. Today was the first time I had heard someone mention the cash flow aspect of the horror story that would be the ports grinding to a halt for weeks.

If you have goods being shipped in, your invoice will be raised on despatch and if on 30 day terms your payment clock starts ticking, it is conceivable that if it is severely delayed your invoice may be due before you receive the goods.

Conversely if you are exporting you may find your goods stuck and customers refusing to pay because of non-receipt.

Both scenarios could be detrimental to your cash flow. It is worth as part of your BREXIT preparation doing a worse case forecast to see what issues you may have, and if there are issues making some plans just in case the worst occurs.

Hopefully none of this comes to pass and equally hopefully I am behind the curve in thinking of this but just in case I’m not as someone who has worked in Finance for 19 years it really is worth planning for.

By |2019-01-11T14:17:22+00:00January 11th, 2019|Finance and Accounting, General Topics|0 Comments

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