This week I'm tackling a subject which applies to all business owners; payment for goods and services supplied to the consumer.

Any business owner or operator would know, late payments have the potential to cripple a business. So here's some hints on how to keep the cash flowing.

* Consider offering a variety of methods of payment, for example BPay, direct credit, credit cards or Eftpos.

* Defer capital expenditure and non-essential expenditure to periods when your cash flow is not under pressure.

* Seek arrangements with creditors to provide a payment extension to your own business so that the money you are owed and the money you are due to pay out is further in line and your cash flow is not affected.

* Request or increase an overdraft facility to meet peak cash flows.

* Consider the flexibility of business credit cards to assist with small purchases in lieu of using cash and get rid of the petty cash tin. You may benefit from up to 55 days interest free, if you pay the card off in full each month.

* Consider offering a discount for payments received within the usual 30 days or larger discounts for payments received within seven days. If the business has issues in receiving funds, it won’t be long before the business has issues in paying funds to suppliers and covering operating expenses. If this problem occurs, it is recommended to seek legal or financial advice to address the issue before it gets out of hand.

One of the biggest things to ensure you’ve prepared for is peak and low cash flow periods, especially in businesses which are particularly seasonal.

Throughout the year cash flow can alter dramatically.

Understanding your cash flow movement allows you to forecast and ensure banking and credit facilities are in line with these peaks and troughs.

Perhaps the biggest tip of all is to keep track of what you’re owed. Without knowing this, you really don’t know where your business is situated.

* Sara Morrison is the client services manager at South West Credit.