Business Cash Flow: How To Make More When You Need It Most
If you own a business, you know how important cash flow is. If you don’t have enough working capital, it doesn’t matter how great your product or services are. You simply can’t meet business demands. If you are looking to boost the flow of cash when you need it most, consider the following eight tips.
1. Send Invoices Quickly
The best way to increase your company’s flow of cash is to speedup customer payments. Accordingly, try to send invoices as quickly as possible. If you can, offer a discount to customers who pay bills timely.
2. Offer Subscription or Continuity Sales
If you can convince your customers to commit to buying products or using services for a long period, you can likely increase the amount of cash your organization receives. Think about offering a discount for clients who purchase products on a continuing basis.
3. Get Professional Help
While you may know your business inside-out, you may not have the expertise to identify all business opportunities. While you may not want to pay for an accountant, a skilled professional can identify ways to increase cash receipts.
4. Build Your Business
Not all business expansion costs money. By training employees, increasing marketing or improving processes, you may reach more customers. More customers usually mean greater cash flow. Be careful, though, not to overextend your company, as this can have the opposite effect.
5. Apply for Credit
A business line of credit can give your organization an influx of cash. Be careful not to overdo it, though, as minimum payments can eventually decrease your cash on hand.
6. Encourage Credit Card Payments
While paying credit card processing fees is frustration, card payments usually go through faster than their check counterparts. An extra day makes a big difference with flow of cash.
7. Negotiate Long-Term Financing
Paying for equipment, tools and other business necessities over time often requires less day-to-day cash. If you can, negotiate long-term financing for your business credit accounts.
8. Take Advantage of Grace Periods
Your company credit card may have a payment grace period. If you pay during this time, you don’t incur any penalties. By delaying these credit card payments as long as possible, you can use your company’s cash for other, more immediate expenses.
By ensuring a consistent, reliable flow of cash, you can better meet customer expectations. While each organization is different, these tips should help your company increase cash flow when you need it most.