99 ways to improve your cash flow
10/03/2015 / Comments 0
We all know that cash is king and vital to a business’s success. But we also know that managing it can be extremely difficult to get right, with so many internal and external factors affecting how your cash is flowing.
While many people will suggest a few ways to improve your cash flow, not all of them apply to every business. We’ve therefore taken the time to compile this definitive guide to keeping your cash flowing, and hope that it will aid you in your bid to get your number one priority right.
1. Update cash flow forecasts
Maintaining a healthy cash flow can be difficult if you don’t have a clear picture of all your incomings and outgoings. By keeping your cash flow forecast up to date, you can be aware of any upcoming shortfalls and take measures to protect your position. Our beginners’ guide to cash flow forecasting could help improve your financial management.
2. Take the time to search for funding
Although cash flow can often be improved by securing new funding for the business that plugs the gap between supplying goods or services and getting paid, often the hardest step in this process is the first. With so many things to manage on a day-to-day basis, it can be easy to keep putting this off, but there are so many resources available to help you in your search. Here are just some of the places you can look for funding support.
3. Negotiate payment extensions with suppliers
If you’re experiencing a cash flow shortfall but enjoy strong relationships with your suppliers, it is worth picking up the phone and requesting a small payment extension. They’ll always be more appreciative of being kept in the loop, particularly if the alternative is for you to extend payment beyond agreed payment deadlines.
4. Ask your customers for earlier payment
Instead of hoping that a customer might pay a couple of days early, you could explain your situation and see whether they might be willing to pay sooner than planned, particularly if you have a strong relationship with them. You may even be able to offer them a small discount on the invoice for doing so – if it will be more beneficial to receive a smaller amount now than the full amount later on.
5. Email clients for repeat business
Sometimes securing a new order is a straightforward way to improve cash flow, particularly if you can receive all or part of the payment up front. Your past or existing clients and customers are ideal candidates to speak to, and a simple email reminding them of your products and services or any latest offers could prompt them to place another order.
6. Extend your overdraft
For a short-term boost, an extension to the business’s overdraft could be all that’s required to improve cash flow. It may not always be possible to extend your overdraft, but approaching your bank can help you get a better idea of what options are available.
7. Invoice on time
Don’t give customers any reason to delay payment. Most businesses won’t pay until they receive the invoice so any delays in invoicing will generally lead to delays in getting paid, particularly if they have arduous internal processes. Be sure to invoice as soon as possible so that the credit period can commence immediately.
8. Confirm receipt of your invoices
This is one of the most overlooked credit management strategies, but can have a major bearing on cash flow. By calling your customer to check they have received the invoice, you can confirm they are happy with its details and whether there are any disputes. It also removes the opportunity for your customer to argue they never received the invoice in the first place.
9. Chase as soon as it’s overdue
So, an invoice hasn’t been paid. What now? The saying ‘time is money’ is rarely more true than it is in this context, as the likelihood of payment being received in full diminishes rapidly the older it gets. Chase your customer immediately – their failure to pay might be a simple mistake which they weren’t aware of, or it could expose a deeper issue which may require other steps to be taken to protect your cash flow.
10. Look into invoice finance
Trading on credit terms can create a significant cash flow headache for businesses of any size, but invoice finance facilities such as factoring and invoice discounting allow you to access up to 90% of an invoice’s value within 24 hours of its issue. The rest is then forwarded when the customer paid, less the funder’s fees, and facilities can additionally provide a sales ledger management service and debtor protection. Read more about how invoice finance could help your business.
11. Make it a companywide priority
If improving cash flow is so important currently, communicate this to your employees so that the whole business pulls in the same direction and keeps cash flow at the forefront of their minds.
12. Incentivise sales teams when payment is received
Many businesses incentivise their teams when an order is placed. However, it is important to remember that a sale isn’t a sale until payment is received. Consider incentivising your teams once you’ve been paid instead, thereby reducing the risk of overtrading and ensuring staff are focused on those who are likely to pay.
13. Focus on larger invoices
It might sound simple but, if you have a particularly large invoice on your sales ledger which hasn’t been paid, putting an extra emphasis on its collection can be a simple step to improving cash flow.
14. Make the most of supplier credit periods
If your supplier has agreed to trade with you on 30 day terms, an easy way to give your cash flow as much breathing space as possible is to hold payment until the day it’s due.
15. Release cash from existing assets
Take a look at your balance sheet. That’s potentially a lot of cash tied up in assets. Some funding facilities enable businesses to unlock this cash by selling plant, machinery and equipment to funders and leasing them back for regular instalments, providing a useful cash flow boost.
16. Lease assets instead of buying them
Similarly, purchasing new assets outright can have significant cash flow implications. Hire purchase, finance leases and operating leases allow businesses to either pay for the asset over a longer period of time, or alternatively lease it for the period it’s required, which also gets around the issues of asset depreciation. Find out more about asset finance solutions.
17. Use account opening forms
In the event an invoice isn’t paid on time, it’s vital you know who you need to contact in order to get paid. Account opening forms offer a means to collect the details of the key individuals at the outset, and will also help to get the information on your invoice right in the first place.
18. Request full or partial payment up front
If you’re going to struggle to provide a service before getting paid, you could ask a customer to pay a deposit up front to help. Similarly, in the event you receive a new order from a business with a track record of paying late, or whose credit report isn’t favourable, requesting full or partial payment up front will give you the added peace of mind in addition to improving cash flow.
19. Offer early settlement discounts
Early settlement discounts are a great way to overcome the cash flow gap that arises when trading on credit. Although it will lead to a slightly lower profit margin, the benefits of being paid sooner could be far more advantageous. The discount percentage needn’t be excessive, nor apply to every customer, but just enough to encourage early payment and improve cash flow.
20. Enter early payers into a competition
Competitions can also help incentivise your customers to pay early. Why not enter everyone who pays inside a week into a prize draw to win vouchers, or perhaps a discount off their next order? This can be a greatly effective way to improve cash flow.
21. Talk to an independent broker
An independent broker will have experience of working with businesses to gain a deep understanding of their cash flow challenges and then identify the right solutions. With so many lenders and funding solutions on the market to choose between, this approach can make the picture seem a lot less cluttered whilst leaving you to focus on growth. Here are three reasons a broker can help.
22. Turn down new orders
This might sound drastic, but taking on a new order without the cash flow in place to fulfil it can have disastrous consequences. It could potentially take your business to the brink, no matter how profitable it might be, or at the very least annoy your customer, who’s counting on the order.
23. Review your lead acquisition techniques
As the previous tip explains, taking on new business doesn’t necessarily equal an improved cash flow. What you could do, however, is review the performance of your existing lead acquisition techniques and see where improvements can be made – particularly in the cost per acquisition.
24. Switch from capital to interest-only repayments on business lending
If you’ve got a business loan or commercial mortgage in place, under the terms of the contract you signed it might be possible to switch your repayment plan to interest-only. While this will ultimately mean you pay more back in the longer term, it will bring immediate cash flow breathing space to the business. Other longer term strategies can then be investigated.
25. Outsource any debt over 90 days old
A quick look at your sales ledger may well identify a number of invoices which remain unpaid after 90 days. Not only is this cash that could prove a major difference to your cash flow, its recovery will no doubt be consuming a great amount of your credit control time and resource, in turn detracting from newer debts. Consider outsourcing these to a specialist debt collection agency, who’ll not only remove the burden from your shoulders but also bring their expertise to the recovery process. Here’s how we can help with your debt collection needs.
26. Write off unpaid debts
If a debt is proving too difficult, costly and time-consuming to collect, you could consider writing it off as a bad debt. This will enable you to claim Bad Debt Relief on it, allowing you to reclaim the VAT you’ve already paid on it.
27. Sell your aged debts
Debt purchase offers businesses an alternative to writing off unpaid invoices or investing more time into their recovery. By selling them to a debt collection agency you’ll receive an amount for them, which could provide the desired cash flow boost. This is a service that we could provide if you’re interested in finding out more.
28. Ask for the undisputed part of an invoice to be paid when disputes arise
Disputes can be incredibly frustrating for businesses and lead to significant delays in payment. On occasions that your customer is disputing part of the invoice, be sure to ask them to pay the undisputed part while you attempt to resolve the dispute so that your cash flow is not impacted further.
29. Be sceptical of your customers’ excuses
Customers are very good (and often very creative) when it comes to making excuses as to why they’ve not paid you yet. It’s important that you don’t take them at face value, however, and attempt to find out how genuine they are. Doing so could lead to payment being received in no time at all.
30. Secure a short-term loan
It might be possible for your business to secure a short-term loan from your bank. Be wary of the interest rates however, and be certain you’re not harming your business’s longer term financial health for the sake of a quick fix. Find out more about business loans.
31. Regularly review your sales ledger
Knowing when your customers are approaching and missing payment deadlines is vital to effective cash flow management. Review your sales ledger regularly so that any reminder or chasing emails and letters can be sent punctually to reduce delays.
32. Keep on top of customers throughout credit period
It is important that you have the resource to maintain contact with customers throughout the credit period and remind them of looming deadlines at key intervals. This will help to keep your invoice front of mind and increase the likelihood of getting paid on time, whilst building your relationship with the customer. If you don’t have the time or resource, it might be worth exploring the benefits of a dedicated credit control agency to do this on your behalf.
33. Secure credit insurance
Suffering a bad debt can cause an unexpected, and often severe, impact on cash flow. Credit insurance safeguards your cash flow against late payment, either through non-payment or protracted default, to protect you from any nasty surprises.
34. Charge late payment interest
The cash flow impact of an unpaid invoice can be significant, but legislation exists which gives businesses the right to charge their customers compensation. The Late Payment of Commercial Debts (Interest) Act means businesses can charge up to £100, depending on the size of the debt, in addition to daily interest of 8% plus the Bank of England base rate, to help cover the cost of its collection.
35. Use the authority of a debt collection agency
When debts are proving particularly tricky or time consuming to collect, third party intervention can be what it takes to get the desired result. This is where a specialist debt collection agency can really help, removing the burden and bringing authority to the collections process. Often, the customer being informed that their debt has been assigned to a debt collection agency is, in itself, enough to bring a prompt resolution. Take a look at how Hilton-Baird can assist in instances such as these.
36. Get a business health check
It can often be beneficial to get a fresh perspective on your business’s finances and where potential savings and improvements can be made. A business health check is a great way of doing this, while it’s also possible to focus on certain aspects of the business, for instance its funding arrangements.
37. Display your credit terms clearly
Your invoice gives you the perfect opportunity to make it clear when you expect payment. Don’t just state your credit terms however, be sure to include the payment deadline.
38. Reduce your credit period
There are a number of benefits to reducing the length of the credit period you offer your customers, but perhaps the biggest is that you’ll get paid sooner.
39. Generate credit reports
Trading on credit terms can be a risky business. Fortunately, credit reports give companies a straightforward and relatively low-cost way of gaining an understanding of their prospective customer’s creditworthiness in order to protect your cash flow. This information can then help you decide the length of the terms to offer, or perhaps whether full or partial payment should be requested up front.
40. Downsize your team
For obvious reasons this isn’t the most popular of options, but sometimes it’s a necessary evil in order to safeguard the business’s future. Outsourcing can be a cost-effective option for some business functions.
41. Reduce staff working hours
Again, this option is often considered as a last resort, but reducing staff working hours and shifts can bring vital savings to the business and improve cash flow. Although it may upset staff, it will at least preserve their jobs and is preferable to making redundancies.
42. If you don’t ask, you don’t get
Whether you’d like to pay less for raw materials, secure longer terms from suppliers or would really benefit from early payment from customers, if you don’t ask in business you just don’t get. You might be surprised what people will do for you if you’re in difficulty, particularly if you enjoy good relationships with your business contacts.
43. Define your credit control procedure
Do your credit controllers know what they’re doing at each stage of the credit period? Having a clearly defined set of instructions in place which have been created according to past experiences and best practice can dramatically improve your collections success.
44. Send your accounts receivables team on a training course
While experience will often count for a lot in credit control, ensuring your staff stay on top of the latest tips and trends can be hugely beneficial to their efficiency. There are plenty of courses out there so invest the time to find them.
45. Consider personal guarantees
Many businesses are afraid of requesting a personal guarantee in their Terms and Conditions of sale, but this can have a major impact on the priority of your invoice with your customer and ultimately protect your cash flow should the business go bust.
46. Review your terms and conditions of sale
When was the last time you reviewed your Terms and Conditions? Your T&Cs can be a very useful weapon in your company’s bid to get paid on time and keep cash flow ticking over. It is also worth monitoring your competitors’ T&Cs too to ensure you stay competitive.
47. Take a look at the government website
Depending on the stage of your business’s development, its requirements and its objectives, there are a range of different grants, schemes and resources which could be available. Many of these specifically target the business’s finances and cash flow and are well worth exploring.
48. Review your existing suppliers
When was the last time you benchmarked your suppliers? From utilities to stationery, it might be that the company which was once the most cost-effective is no longer so.
49. Outsource your credit control function
If your company could benefit from credit control expertise, or would perhaps prefer to spend its internal resource on other areas of the business, there are companies which can assume the responsibility for all or part of this function. Their experience will often bring a reduction in debtor days and therefore help to improve cash flow, and services can be provided on a confidential basis.
50. Make the most of your stock
Any business with a large amount of unused stock therefore has cash tied up which could be unlocked to help improve cash flow. Asset based lenders can advance funding against the value of raw materials, work in progress and finished goods, with facilities also releasing cash against unpaid invoices. You can read more about stock finance here.
51. Explore credit circles
Have you considered whether you could join any credit circles? These are great ways to share and access important creditor trends with fellow companies – typically other members of a trade association – in order to access instant information on the creditworthiness of customers both existing and new.
52. Put customers on a stop list
Warning customers that they will be placed on a stop list can often prompt them to clean up their act, particularly if you’re a vital supplier. Alternatively, place notoriously poor payers on a ‘watch list’ and ensure they are given extra attention by your credit controllers. Regularly credit checking your existing customers is a great way to keep an eye on your customers’ evolving creditworthiness, and any whose reports throw up some issues can also be placed on a stop or watch list.
53. Maintain a strong relationship with your bank
You should never underestimate the importance of having a good relationship with your bank or funding partner. By arranging regular meetings (and attending them) and keeping your business plan up to date, any temporary increases to overdrafts can be much easier to secure.
54. Send invoices electronically
There’s no excuse not to be sending invoices to customers via email these days. The post can be unreliable and takes at least a day. Invoice electronically as soon as possible and give your customer a call to check they’ve received it.
55. Stop accepting cheque payments
We’ve all heard ‘the cheque is in the post’ excuse. Well, remove this weapon from their armoury entirely. Instead, allow customers to pay electronically by BACS or CHAPS to speed up the clearing process.
56. Automate the collections process
Credit control can be a labour-intensive task. But systems and programs exist which allow you to automate the sending of emails and letters to dramatically improve the time spent on admin, allowing your credit control team to focus on priority invoices.
57. Broaden your mind when it comes to funding
From our experience, too many businesses are narrow minded when it comes to their funding. The first port of call remains the bank, however the evolution and growth of a range of different funding options in recent years has made it all the more important to have an open mind as to the options available. This eBook assesses the pros and cons of a range of finance methods.
58. Perfect your invoice
Take a look at your existing invoice template – is it as clear as it could be? Make sure that your credit terms and expected payment date are shown prominently, and that your accepted payment methods and details are also obvious. Also, clearly explain the products or services provided to reduce the chances of any queries being made.
59. Send a Letter Before Action
If your customers are giving your credit control team the cold shoulder, ramping it up a notch can be all that’s needed to encourage them to pay. Also known as a ‘seven day letter’, a Letter Before Action informs your customer of your intention to commence legal proceedings against them should they not pay within the next seven days.
60. Consider peer-to-peer lending (P2P)
While invoice finance typically advances funding against a business’s entire sales ledger, online market places exist which allow companies to sell individual invoices for a cash flow boost. Peer-to-peer lending has grown significantly in use over the past few years. You could also secure an advance against a particularly large invoice through single invoice finance.
61. Maintain good relationships
Getting your customers to like you can be a key factor in getting paid on time and maintaining a healthy cash flow. By being friendly at all times and getting to know their accounts payable team, they’ll typically be less likely to delay payment and will be more receptive to your credit control activity.
62. Thank customers who pay on time
It’s amazing how two little words can make such a difference. By remembering to say “thank you” to your customers every time they pay, you can help to build a strong relationship and make it clear how important their payment is to your business.
63. Analyse your credit control performance
When you’re struggling with cash flow it is important to find the root cause of it. While it can sometimes be down to a combination of freak events, on other occasions it can be traced back to inefficient processes. If your business is commonly being paid late, for instance, you can take proactive steps to improve your credit control, or perhaps look into outsourcing this function to credit control experts.
64. Hire a part-time FD
It can be difficult to juggle driving your business forward with overseeing its finances, and not every business can afford to appoint a full time finance director. However it is possible to hire an FD on a part-time basis, bringing in a fresh pair of eyes and helping to spot any cash flow issues before they arise.
65. Look into equity investment
Particularly for businesses which are growing rapidly, cash flow can be a major issue which holds back their development. Rather than securing a loan, equity investment gives businesses the chance to access vital funding from specialist investors in return for a share in the company. This option also gives the business access to the investor’s experience and contacts, and can therefore be pivotal to the growth of a business. Here are some of the equity finance options that exist.
66. Explore crowdfunding
Crowdfunding is another funding solution which has boomed in recent years. It involves a business which is in need of funding putting itself in front of several investors – typically online – who’ll then lend money at often favourable interest rates. Find out more about crowdfunding.
67. Implement a written credit policy
Fewer than one in five businesses currently have a written credit policy in place, but it can be a great way of ensuring a co-ordinated and consistent approach to credit control throughout the business. It ensures continuity when members of staff leave and come in, removes bias and, done right, will dramatically improve efficiency and cash flow.
68. Talk to your accountant
If your business benefits from access to an accountant, speak to them to find out what they would recommend. Whether you’re pointed in the direction of a particular funding facility or independent broker, it could give you the direction needed to improve your cash flow.
69. Refine your business plan
Without a solid business plan in place, it can be extremely difficult to secure some forms of funding. Credit decisions on applications for traditional bank lending, such as overdrafts and loans, will often require a business plan, so take the time to get it updated and professional looking. This blog post offers tips on how to write the perfect business plan.
70. Consider using plastic
Credit cards are relied on by a huge proportion of businesses to help solve their cash flow issues. While they should be avoided where possible, credit cards can be useful for a short-term cash flow boost – but be sure to pay it off on time or you could find yourself in even greater trouble further down the line.
71. Give your friends a call
Again, this isn’t the most ideal way to overcome a cash flow shortage, however it’s essentially a quick, easy and affordable way to raise funding without high interest rates attached to it.
72. Give customers a range of payment methods
Some customers will need to be able to pay by cheque, but don’t make this their only option. Make sure you give your customers as many payment options as possible to make it a simple task and deter them from putting payment off.
73. Create a contingency fund
OK, this isn’t strictly a direct solution to any immediate cash flow problems. But in the longer term, contingency funds can be vital to help absorb the impact of any cash flow shortfalls.
74. Invest in accounting software
Whether it’s a case of upgrading your existing package or investing in a new one, having access to efficient accounting software can dramatically speed up the invoicing process, reduce errors, enhance reporting and therefore improve your business’s cash flow.
75. Take advantage of early settlement discounts
A longer-term approach is to take up any early settlement discounts which might be on offer from suppliers. This is particularly useful if your cash flow forecast tells you there might be a cash flow shortage around the corner. Be sure that any early payments won’t cause immediate hardship, however.
76. Diversify your product range
Particularly for businesses which experience seasonal fluctuations in sales, diversifying your product range can help to mitigate the resulting cash flow issues that this can inevitably bring. Could your company try something new?
77. Commence credit period immediately
Our research suggests that around a third of businesses in the UK commence the credit period they offer to customers at the end of the month in which an order is placed. This means that, if you receive an order on the first day of a month, you could have to wait up to 60 days for payment. By commencing your credit period the moment an invoice is raised, you can considerably reduce the cash flow gap between providing a service and getting paid. Alternatively, invoice finance can bridge this gap by releasing up to 90% of an invoice’s value within 24 hours of its issue. Read more about invoice finance here.
78. Reduce costs
Rather than looking to get money in to ease any cash flow problems, it is equally as important to review where savings can be made across the business. This, of course, sounds easier than it is in practice, but there are ways to do this. Here are five key areas to save your business money.
79. Schedule bonuses for high cash flow periods
If your business gives annual bonuses to its staff, this can often create a cash flow headache. It is therefore helpful – particularly for those with season fluctuations in sales – to coincide these payments with periods the business enjoys a strong cash flow. Alternatively, stagger bonuses to staff throughout the year, for instance on a departmental basis.
80. Hire a credit control specialist
If you find that you’re juggling your time running your business and trying to chase customers for payment, there are significant benefits of hiring a specialist to run your credit control on your behalf. An experienced recruit should be able to improve your DSO, whilst giving you the opportunity to focus on growth. Alternatively, it could be worth outsourcing to a credit control agency.
81. Review company-wide processes
Take a look at your internal processes and structures. Those which haven’t been reviewed for a while could be a significant source of wastage. Scrutinise each element and consider where savings be made and/or efficiency increased. Remember that time equals money!
82. Utilise the value of your property
For many businesses their property will be their largest asset, which means that’s a lot of money tied up. Sale and leaseback allows businesses to sell their property and then lease it back in return for fixed monthly rental payments.
83. Expand the team
This might sound counter-productive in the context of improving your cash flow, but by bringing in extra resource you might be able to reduce the workload on some members of your team, thereby helping to generate new business or perhaps spend more time on credit control.
84. Move offices…
…and particularly move into cheaper offices. Whether you’re based in an expensive part of town and could move slightly further out, or simply don’t need the size of property you currently own, there are savings to be made if you were to consider downsizing or relocation.
85. Review your existing funding
When was the last time you reviewed how effective your existing funding facilities? Given the ongoing evolution in the commercial finance market, with new products coming to prominence and lenders competing with each other for your custom, switching providers and facilities could lead to a higher level of funding being secured, a better level of flexibility and service from the lender or perhaps a lower cost. Are you benefiting from the right funding for your business? Benchmarking your existing facility could help identify areas for improvement.
86. Segment your customers, suppliers and inventory
It can be useful to segment your suppliers, customers and inventory separately when reviewing your cash flow to give you a better picture as to where improvements can be made. For instance, is your cash tied up in stock? Or could funding be released against the value of your sales ledger? And when it comes to suppliers, separate them into regular and one-off suppliers, as you might be able to negotiate better terms and discounts with the ongoing ones.
87. Get to know customers’ payment cycles
If you conduct some research into your customers’ payment patterns, you might be able to spot a trend in terms of when they typically pay. This information could be vital when it comes to credit control and help your team to focus its attention on particular customers at important times.
88. Don’t always focus on the lowest price when choosing suppliers
It can be easy to plump for the cheapest option when it comes to choosing your suppliers. But this isn’t necessarily going to bring the best cash flow benefits to the business. Sometimes, a more expensive supplier with flexible payment terms will be more favourable than the one offering the lowest price.
89. Look into Crown solutions
When struggling with cash flow, payments to HM Revenue & Customs are often some of the first to be delayed. Unfortunately the Crown isn’t the most forgiving of creditors, however there are options to help you restructure your arrears to suit your cash flow.
90. Adopt a ‘Just In Time’ policy
Stockpiling your inventory can be sensible in the long-term, but problematic when the orders dry up and your cash gets tied up. Depending on the nature if your business, it could be beneficial adopting a ‘Just-In-Time’ policy to help manage cash flow.
91. Invoice at key intervals on large contracts
If the service you’re providing to a customer entails a series of different stages, there could be an opportunity to invoice them at key intervals for the work done so far. This will not only keep your cash flowing throughout the duration of the contract, but also make it easier for your customers to pay and therefore reduce the risk of them defaulting on payment.
92. If you don’t need it, don’t buy it
It sounds obvious, but there are several business expenses that are nice-to-haves rather than need-to-haves. Before making any purchase, ask yourself whether it’s critical to your business’s success.
93. Outsource key business tasks
From credit control and payroll to recruitment and HR, there are a number of everyday functions which can be outsourced to the experts. Not only does this ensure your processes are in capable hands, it reduces the need to recruit staff and avoids all the headaches that can accompany it.
94. Don’t be afraid to ask for help
There are so many companies and agencies which exist to make the life of a business owner easier. Often, the barrier which prevents owners from reaching out for help is pride or fear, but embracing any cash flow problems and being proactive in your efforts to overcome them can be a huge factor in achieving this.
95. Don’t overlook the smaller orders
In an ideal world every order received would be a large one. However the smaller ones can prove to be very useful at keeping cash flow ticking over.
96. Make the most of high cash flow periods
When your business is enjoying a period of high cash flow, this represents an opportune moment to make those investments you might have been putting off, for instance on new infrastructure or machinery. Don’t wait until the last minute, when your cash flow might be under a bit more strain.
97. Don’t stick your head in the sand
First and foremost, don’t ignore the issues at hand and hope they go away. As tempting as it can be when you are busy, or uncertain as to how best to deal with it, your cash flow is far too important to neglect. Instead, tackle them head on and take the required steps to improve it. The sooner you work on cash flow issues, the less daunting and time consuming the task will be.
98. Remember that cash is King!
Always keep in mind the old adage: Turnover is vanity, profit is sanity but cash is King! It doesn’t matter how profitable you are or how much revenue you’re bringing in, if you can’t afford to pay the bills or employee wages you could find yourself in serious trouble.
99. Don’t give up
No matter how desperate things get, the odds are there are ways you can improve your cash flow and get back on solid financial ground. Just face the facts and take action as soon as you’re aware there’s a problem. Whilst being rejected for funding can be disheartening, don’t let it deter you from trying again. This blog post on 8 ways to overcome a no offers tips on how to keep going when faced with rejection.
At Hilton-Baird, we specialise in delivering cash flow solutions to businesses just like yours. For more information about the range of ways in which we can assist, please contact our award-winning team on 0800 9774833 or email firstname.lastname@example.org.
Did we miss any cash flow tips? Please leave your suggestions in the comments below!