To any business cashflow is front-line.  Difficulties with cashflow undermine the whole business and is ultimately the reason businesses fail.

This is especially true in harsher economic conditions.

Debt recovery becomes more of an issue and closer attention has to be paid to trading terms and conditions.

It is important to pursue debtors early to increase the prospect of recovery.  Tools such as the Statutory Demand (which can force a company to prove solvency) can be swift and effective.

However, reasoned negotiation can mean debt collection and Court proceedings are avoided.

More attention to the detail of budgets and budgeted cashflows all assist greatly in managing through a harder economic environment.