Effective credit control can help you to capitalise on domestic growth prospects, at a time when demand is moving from export markets back to onshore UK customers.
According to the Markit/CIPS UK Manufacturing Purchasing Managers’ Index, the PMI stood at a three-month high of 53.2 at the end of October.
But within this figure was a pronounced swing towards domestic demand, as a more subdued export market in Europe saw international orders drop.
“The UK manufacturing sector made a bright start to the final quarter of 2014, with rates of expansion in production and new business accelerating sharply from their September lows,” the report states.
“The pick-up in growth mainly reflected the resilience of the domestic market, as overseas demand was impacted by the ongoing economic weakness of the eurozone and the euro-sterling exchange rate.”
For UK companies – particularly those focused on domestic sales rather than exports – this makes for a promising market at present, with the UK accounting for “the main source of new contract wins” according to Markit senior economist Rob Dobson.
And in a climate of increasing order books, keeping a close eye on credit control and cash flow can help to ensure a steady income stream, allowing your business to grow sustainably based on your own success, rather than taking on the risk of external financing.
By keeping your clients’ invoices under close scrutiny, you can spot any incidents of late or non-payment, and act promptly to pursue for the unpaid amount.
This is good business practice in any economic conditions, but particularly in a growing domestic market, it means you have every penny available to reinvest in your business, capitalising on the full potential for growth and ensuring your competitors do not get ahead of you.