We were featured in The Guardian's Small Business Showcase
Bathroom Origins is a specialist distributor of design-led European bathroom products.
We celebrated our 18th birthday this year and a big reason for our success has been managing our cashflow effectively. This has been especially true over the past few years when due to the tough economic climate, some of our customers have found it difficult to pay on time.
We check all new customers credit worthiness by using a credit reference agency and only give credit to low risk businesses. Otherwise, we ask for pre-payment. We are also alerted to any changes affecting their financial position so we can act quickly if we need to.
We offer our customers a 30 day end of month account and because all invoices are issued in one month and due on the last day of the next month, it is much easier to manage late payments.
As a business we try to be amenable with customers who are experiencing cashflow issues by offering flexible payment plans. It's a fine balance to ensure our customers continue to buy from us and pay on time.
We negotiate favourable payment terms with our suppliers, allowing us to plan our outgoings.
Because we manage our cashflow well, we were able to deal with a crisis this year when our main banking provider was dissolved. UK clients including ourselves had their bank accounts frozen overnight without notice. Fortunately for us we started banking with another provider the year before and were slowly moving over to them.