For many small businesses in Oxfordshire, the Christmas trading period is a crucial one.

Small and medium-sized companies will be hoping to have the year's deals closed by the first week of December, so they can enjoy a break over the festive period.

But seasonal cheer should not distract owner-managers and finance directors from keeping a close eye on cashflow.

Indeed, the Christmas period can represent a genuine risk to the financial health of a small business. if adequate preparations are not made.

The primary concern for SMEs should be cashflow. Cashflow problems can strike in the run-up to Christmas and the first few weeks of the New Year.

As these are popular times to take annual leave, businesses often find that managing directors, finance staff and other people in a position to authorise payment are no longer present to sign off cheques to their suppliers.

You might find yourself waiting twice as long for a cheque or bank transfer, which can create obvious difficulties.

The problem seems to grow worse every year, and it can definitely be a contributing factor to the number of start-ups, micro-businesses and even established small firms that go under.

So what can be done to mitigate the risk?

Business owners need to make sure their invoices are raised in good time, that all details are present and correct on those invoices and that they get to the right person at the right time.

It is not a bad idea to put a call in to a client, especially your biggest customers, and check their arrangements for the festive period.

If you have a good relationship with the finance team, they might be willing to authorise an early payment, or at least set up a bank transfer for you. The alternative is to look at funding your invoices via a commercial finance partner.

Invoice financing provides your business with cash by allowing you to raise finance from the unpaid invoices owed to you.

This will enable companies to have complete control of their future finances.

Surprisingly few businesses, especially those with no fixed assets (clients in people' business, such as media and marketing companies), realise they have a very valuable asset that could provide finance for growth - their invoices.

For most companies, the debtor book can be their largest and most flexible asset, capable of providing significant working capital enabling the business to grow and prosper.

Borrowing money against your sales ledger is an ideal option for many smaller companies.

In practice, it means your cash flow situation improves with every new customer signed.

Contact: www.igfgroup.com