Ways to improve cash flow

The old adage “Cash is King” has rarely been truer. No cash means you are unable to pay your employees, your suppliers and even yourself.

If you have a significant amount tied up in debtors and/or work in progress, rather than in your bank account, there are steps you can take to improve this position.
⦁ Invoice as early as possible ….
as soon as products are ready, or work has been completed.
⦁ Make it easy for the customer to pay…
supply bank details, add a Pay Now button to electronic invoices, put in place direct debit so you can decide when you get paid.
⦁ Regularly follow up outstanding debts…
use automation to chase.
⦁ Encourage early payment…
possibly offering a discount to pay early.
⦁ Ensure there are processes in place to resolve disputes speedily.
⦁ Look at costs and see if any can be reduced or eliminated.
⦁ Increase prices…
whilst you may possibly lose some sales this could increase cashflow.

If cashflow is an issue, please talk to us.