WITH just 13 working days to Christmas, businesses in the south are being urged to chase their debtors now or face cash flow problems in the new year.

Firms left with unpaid invoices on Christmas Eve might not see any money until early January as workplaces shut down for the entire festive period.

The note of caution is being sounded by Atradius, a leading credit insurance and credit management specialist.

It estimates that firms could be left millions of pounds out of pocket at a traditionally tough time of the year.

The company says businesses must re-double their efforts to get their customers to pay up before the Christmas closedown, which could last up to 11 days.

Marc Henstridge, Atradius senior manager, UK risk, said: "Firms must chase up their customers for payment before companies shut down, or accounts staff go on holiday.

"Businesses due to be paid between Christmas and the New Year should consider negotiating early payment, perhaps by offering a festive discount to their customers.

"We've already seen that high street retailers are struggling to make sales this year, so it is likely to be a cold Christmas for UK companies.

"January is often a slow time for business, so the last thing firms want is a massive hole in their cash flow."

As Christmas Day falls on a Saturday this year, most companies will close on Christmas Eve and will not open again until the following Wednesday.

Others will stay closed until January 4, and those that do open might be running on a skeleton staff.

Atradius has issued some hints and tips for improving festive finances:

Chase your outstanding invoices for payment before Christmas;

Negotiate early payments before Christmas by offering your customers a discount;

Find out when your customer is on holiday and when their accounts department will be open;

Tell your suppliers when you will be closed and negotiate longer payment terms if you have cash flow problems.