Business growth is an exciting time for any entrepreneur. However, sustaining positive cash flow may be easier said than done though the normal ups and downs of the business cycle, such as seasonal events, and long invoice payment terms, to name a few. However, there are always ways to improve your business cash flow.
Here are 3 quick tips to improve your business cash flow:
1. Review old equipment and inventory
Looking at options for equipment finance and/or asset rentals can be cost-effective, and dependant on the circumstance, it can increase your speed and efficiency to increase production, or take on new projects, which leads to more incoming cash flow. There will also be money saved with not having to manage and organise for repairs, as you’ll always have the latest technology. Why not seize the opportunity during current historic low interest rates!
2. Consider invoice factoring
Even if you have incentives in place for your customers to pay their invoices quickly, be it by giving discounts, offering online payment options, or enforcing late fees, the invoice payment terms can still place a delay on money owing to your business for products or services completed. This can place a crunch on the cash flow you need now to meet wages, new equipment, or growth.
This is where invoice factoring enters as a solution, allowing your business to access a large percentage of the funds held in your unpaid sales invoices. You simply forward your invoices to the factoring firm in exchange for a cash advance, and the factoring firm now owns the invoices and is paid when it collects from your customers. Imagine what you could do tomorrow, if you got paid today, for the work you did yesterday!
3. Customer Loyalty
Your customers returning is key to business cash flow and growth. The above two points can certainly play into their customer satisfaction. If you present as a quick and efficient business with the latest technology, who also offers unique invoice financing solutions for your customer’s (and your) benefit, it can lead to a win/win scenario. Your loyal customers will also turn into an advocate of your brand which will bring in even more business.
Being strategic about your business will improve your cash flow. The normal ups and downs of the business cycle will always be there, but the pressure will be less with a positive cash flow solution in place. Contact us today obligation-free for a cash flow solution for your business.