Cash flow is the heartbeat of your business.
As a CFO, I’ve tried all the different methods.
Here are my top 11 ways to improve your cash flow:
As a CFO, I’ve tried all the different methods.
Here are my top 11 ways to improve your cash flow:
• Lengthen payable terms
Examine your contracts and don’t write checks until the right before the due date.
Contact your biggest vendors and renegotiate to extend payable terms as much as possible.
Examine your contracts and don’t write checks until the right before the due date.
Contact your biggest vendors and renegotiate to extend payable terms as much as possible.
• Pay with credit cards
You can use credit cards to pay on/at the due date and then have an additional ~ 30 days to pay the credit card bill.
But make sure you have high enough credit limits and an expense approval process so cardholders don’t spend more.
You can use credit cards to pay on/at the due date and then have an additional ~ 30 days to pay the credit card bill.
But make sure you have high enough credit limits and an expense approval process so cardholders don’t spend more.
• Upsell your customers
The easiest customer to sell is the customer you already have.
Court your customers to determine their needs and what other services or products they could utilize.
The easiest customer to sell is the customer you already have.
Court your customers to determine their needs and what other services or products they could utilize.
• Lease instead of buying
Buying assets requires upfront cash. Leasing can help you hold on to cash, which can fuel growth.
Interest rates are often low enough it makes sense financially, but the recent interest rate climate has made this strategy less appealing.
Buying assets requires upfront cash. Leasing can help you hold on to cash, which can fuel growth.
Interest rates are often low enough it makes sense financially, but the recent interest rate climate has made this strategy less appealing.
• Get a line of credit
A line of credit is an insurance policy. Get it before you need it, not after the need arises.
When cash flow is tight, it gives you a cushion, but only use it when you have to and don’t let it make you lazy.
A line of credit is an insurance policy. Get it before you need it, not after the need arises.
When cash flow is tight, it gives you a cushion, but only use it when you have to and don’t let it make you lazy.
• Maintain a weekly rolling cash forecast
When you understand cash flow, you can predict high and low points, helping you get in front of issues.
Being proactive about cash flow will reduce stress and save you money.
When you understand cash flow, you can predict high and low points, helping you get in front of issues.
Being proactive about cash flow will reduce stress and save you money.
• Decrease expenses
It’s kinda a “duh” thing, but cut unnecessary expenses.
Pay special attention to fixed expenses and subscriptions, as their frequent nature multiplies their cost over time.
It’s kinda a “duh” thing, but cut unnecessary expenses.
Pay special attention to fixed expenses and subscriptions, as their frequent nature multiplies their cost over time.
• Increase prices
Too many companies charge out of fear, not what the market can handle.
This is one of the fastest ways to permanently increase cash flow and profits.
Too many companies charge out of fear, not what the market can handle.
This is one of the fastest ways to permanently increase cash flow and profits.
• Look for long-term wins
Look at:
▸ updating your equipment
▸ improving your inventory process
▸ for services, automating your employee tracking
These have upfront costs, but in the long run, reduce the month-to-month operating cost of the business.
Look at:
▸ updating your equipment
▸ improving your inventory process
▸ for services, automating your employee tracking
These have upfront costs, but in the long run, reduce the month-to-month operating cost of the business.
• Accept electronic payment
Credit card payment policies often result in quicker payment.
Bank drafts have become more appealing as mail has become less reliable.
For more ways to collect cash faster, read the newsletter I sent to my 8.5k+ subscribers:
newsletter.kurtishanni.com
Credit card payment policies often result in quicker payment.
Bank drafts have become more appealing as mail has become less reliable.
For more ways to collect cash faster, read the newsletter I sent to my 8.5k+ subscribers:
newsletter.kurtishanni.com
Thank you for reading!
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If you enjoyed and think others will as well, I’d appreciate a follow (@KurtisHanni) & RT of the first tweet:
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