How to Speed up Your Cash Flow for Success

Cash-flow

Cash-flow

As a successful business owner, you are in business to make money and if your cash flow is sluggish your bottom line can be drastically impacted in a negative way. To maintain balance in your corporate funds, you must have a supply of money on hand to pay your own vendors, to grow your company, and to honour the financial obligations that you have to your staff. Instead of moving into a panic mode, you should always have a Plan B on which you can rely if some of the strategies that you use to raise cash don’t work. Let’s take a look at some of the most effective ways to keep the cash flowing positively into your corporate accounts.

  1. One of the main reasons that you experience cash flow problems is the timing of delivering invoices for goods and services rendered. It’s important that you match the payments that you have with the time that your invoices are mailed and collected so that your company will suffer no lag time in transferring the collected monies to your accounts payable ledger. If you need to change the timing of your invoices, be sure to notify clients so that they can rearrange their billing cycles to coincide with yours.

  2. You should also take a look at the terms you have laid out on your invoices for clients. Are you allowing them to take more than enough time to pay? Are you making the terms clear to your clients so that your invoices are paid in a timely fashion that enables you to run your business operations effectively? You may want to require a down payment on the products or services that you sell or offer incentives if your clients pay in full before the bill is due.

  3. Set up a variety of payment options for your clients that make remittance of funding for invoices easier for them to accomplish. You may even enquire from them how they prefer to pay so that you can specifically design their account to accommodate their payment habits. With each option, make sure that the client understands the instructions for making payments so that there are no misunderstandings.

  4. Always keep in contact with your clients. Make sure that all contracts are in writing and are completely explained to your clients before work commences on a project or a product is delivered. Let them know about any changes that need to be made in the payment process so that they can prepare in advance for meeting your deadlines.

  5. If you sense that a client is having trouble meeting their financial obligations with you, you may want to visit a site such as www.ashleyfinance.co.uk where you can find helpful tips about how to advise the client to raise the money owed to your company. Should their non-payment impact your cash flow, you as well can use this source to fund your business operations until payments are received.

Speeding up the cash flow in your corporate account can assure you of continued success and profitability in the business community.

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

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