text: How to survive the Christmas blackout period.
  Effectively, everyone is sailing down the same river, causing an industry-wide shutdown. Everyone is restricting cash outflows and this has a knock on effect industry-wide – everyone is chasing everyone else for money, and no-one wants to let go of it for all the same reasons. In dire cases, this period can even be a precursor to insolvency, where businesses who managed to survive until February find themselves on stop credit with suppliers or unable to pay wages. These issues are classic signs of an imminent collapse and serve as a chief reminder of why it's important to prepare for and manage this unfavourable annual tradition.
  Here are some key ways SMEs can prepare for the Christmas Blackout period.
  In the event that a business faces significant cash shortages over the Christmas Blackout, suppliers may be impatient about payments, and in severe cases, this can erode the relationship entirely. Businesses can alleviate this stress by proactively asking for extended terms to see them through to the beginning of March. This will ensure that suppliers have a concrete timetable for payments, but also that businesses can wait until cash flows start to loosen up before paying their debts. It is important that this process is negotiated early, rather than being left until the end of the year.
  Some businesses will incur large bills that can result in significant amounts of money being paid in lump sums. This is an easy way to destabilise cash flow and can have long-lasting effects. To combat this, businesses may choose to put large sums on a payment plan, which would see multiple smaller payments made to the value of the total debt. This is an effective management tool, as it provides the ability to pay invoices incrementally rather than invite the potentially destabilising presence of massive one-time payments.
  Given the tumultuous nature of the Blackout period, it is important that in case of a financial emergency, a business has access to reserve funds to see it through. Without this, the security of a business can be effectively placed in the hands of customers who may not be able to pay invoices on time, leaving small businesses vulnerable. To protect against this, businesses can organise a backup line of credit that will sustain them should customers fail to deliver on time. Receivables can be borrowed against for emergencies, often providing a lifeline to small businesses that need their cash delivered to tide them over until March.