Getting Through the Summer Slowdown: Ben Blacker’s Cash Flow Plan for the Christmas Shutdown

For many Australian businesses, the weeks between mid December and late January are the toughest of the year for cash. Customers go on holiday, invoices sit unpaid, and yet wages, leave loading, rent and supplier bills keep coming. According to Ben Blacker, Managing Director of Blacker Consulting, the businesses that handle summer well are the ones that start planning in November.

“The Christmas shutdown rarely catches anyone by surprise, but the cash squeeze often does. Six weeks of planning now saves a lot of stress in January,” says Ben.

Why Summer Hurts Cash Flow

The pressure comes from both sides at once. Money coming in slows down because:

• Clients and their accounts teams take leave, so payments run late
• Many industries, such as construction and professional services, simply stop for two to four weeks
• New work is slow to start again until late January

At the same time, money going out often increases:

• Staff take annual leave, often with leave loading
• Christmas bonuses and end of year functions
• Suppliers asking to be paid before they close
• Quarterly BAS and super obligations that land in late January and February

Ben’s Five Step Summer Plan

1. Build a week by week forecast to the end of February. A monthly view hides the danger. Map every expected receipt and payment week by week so you can see exactly where the low point sits.

2. Get invoices out early. Bill completed work before the break, not after it. Ben suggests a polite reminder to every customer with an open balance in the first week of December, before their accounts team goes on leave.

3. Talk to your suppliers now. Agree payment timing before Christmas. Most suppliers would rather plan around a clear arrangement than chase a late payment in January.

4. Set aside your tax and super. Move the money for BAS, PAYG and super into a separate account as it builds up, so January obligations don’t compete with wages.

5. Have a facility in place before you need it. An overdraft or line of credit is much easier to arrange when the numbers look healthy. Applying in a hurry in January, with a thin bank balance, is the hardest time to get a yes.

“Lenders like a business that plans ahead. Asking for a working capital facility in November, with a forecast that shows the January dip and the February recovery, is a very different conversation from asking in a panic,” Ben explains.

Use the Quiet Time Well

Summer isn’t only a risk. With fewer interruptions, it’s a good time to review pricing, chase old debts, tidy up the books and plan the year ahead with your accountant. Businesses that use the break to get organised often start the new year in a stronger position than they left the old one.

How Blacker Consulting Helps

Ben helps business owners build a realistic summer cash flow forecast, work out whether a facility is needed, and present the numbers to a lender well before the shutdown. If you’d like a second set of eyes on your plan, a short call before Christmas is a good place to start.