Every business owner has many things to worry about including effective staffing, smooth operations, and good customer relations. But paramount to these are the critical need for cash flow and profits. Without adequate cash flow, a business can’t survive, and without profits, there is no business future. Cash flow pays for the expenses of daily operations including paying employees, buying inventory, paying taxes, and resolving debts.
Why Cash Flow Management is Important
When a business owner properly understands, projects, and manages cash flow, he/she can properly steer the business. That means understanding and keying off the revenue cycles of customers, vendors, and changes in the market. It means understanding and responding to the high and low seasons of the year and properly handling changes in all expense categories.
Cash Flow Management Tips:
-Monitor expenses and cash flow frequently and consistently.
-Look at ways to reduce costs including unnecessary or inefficient spending.
-Cash-in on assets that are no longer needed or inventory that is approaching obsolescence.
-Lease equipment instead of buying it to avoid tying up cash.
-Don’t over-order inventory or supplies.
-Send out invoices promptly when goods are delivered, or services are provided.
-Speed up payment of invoices by using mobile payment processes and by offering discounts for early payment.
-Ask for deposits or partial payments on large orders.
-Delay payments to your vendors for as long as possible or negotiate longer-term payment terms.
-Get a business credit card to cushion the cash flow of the business.
-Consider invoice financing.
How to Secure More Cash
Cash flow can be improved by obtaining financing. Traditional loans can be secured through a bank or credit union. But more frequently these days, financing is being obtained through excellent alternative vendors or financial specialists.
Seek Expert Financing Assistance
Contact Rexford Commercial Capital, based in Rexford, NY. We provide a wide range of commercial finance solutions and we put your company’s interests first. Get the financing solutions you can trust.
