Keeping your cash flow running smoothly is vital to keep your business healthy. Difficulties with money either coming into the business or being paid out can lead to issues with added administration / costs / reputation and your own investment.
8 Tips to improve your cash flow:
- Pay bills strategically. Ensure you keep up with your bills but… some suppliers may not require payment for up to 30 days. Perhaps reach out to see what terms they will offer to give you more flexibility.
- Choose the right payroll cycle.
- Negotiate your payments with suppliers. Perhaps split payments could be approved or monthly installments.
- Collect receivables quickly. Asking for payment when you have provided a product or service is totally acceptable and not something to shy away from.
- Manage your credit policies carefully. Is offering 30 day payment terms causing you difficulties / do you need to request part payment on recipt of order?
- Use a business credit card.
- Consider a line of credit.
- Use technology to make and accept payments. This will speed up the recipt of payments and will allow you to track your credit balance
