Quick Solutions to Resolve Cash Flow Problems

Businesses of all scales are dealing with a juggling act non-entrepreneurs do not often see. The balancing of a company’s cash flow is something to worry about each day of the month. The lag between the time when customers pay and when they’re billed, wages and other expenses needs to be settled is what keeps most business people up at night.

Here are some quick Solutions to fix cash flow concerns:

1. Improve Delivery – the time it takes for a product to reach a customer is a break in a business’ cash flow scheme. Reduce this as much as possible.

2. Do Credit Checks – This process may raise the eyebrows for some customers, but compromises have to be made during a credit crunch. It will reduce payment extension requests or worse – losses.

3. Offer Term Discounts – This is a simple reward strategy. Offer discounts to customers who even though will not pay in cash, will pay it ahead of the deadline.

4. Promote Cash Or Credit Card Payment – nothing beats payment via cash method since that is cash at its most liquid form. The next best thing is credit cards. Ask customers to pay with those first before moving on with payment terms.

5. Charge Late Fees –Banks habitually do this; why not penalize those who does not pay in time since that is what exactly happens to the business owner when the cash flow of their company is disrupted.

6. Collect On Delivery (C.O.D) – this form of payment may be outdated but it doesn’t take away the security both parties get during a purchase.

7. Credit Insurance – this type of insurance protects the value of your business’ receivables. You don’t even have to pay the fee for this. Charge them onto customers with terrible credit history.

8. Reduce Inventory Expenses – successful companies are best in realigning their capital towards different economies. They are not limited by location when it comes to where the budget can be further squeezed.

9. Talk First To Suppliers – before asking a banker for more capital, be sure to talk to your suppliers first for extensions, increased supply or more comfortable terms. They should know better where you’re coming from since they run businesses as well.

10. Sell Equity of Company – a creative way to find capital if you’ve exhausted all other options is to sell a portion of your company. Many investors are always on the hunt for where they could grow their money and are more than willing to invest money into your business in exchange for some shares in your company.

11. Cheapest Suppliers May Not Always Be The Best – sometimes more flexible terms are to be found in other deals that may not be the cheapest. Don’t shy away from these suppliers at first glance. Consider them because it may end up bringing you more profits with their better payment terms.

12. Dip Into Your Savings –this should be one of the very last resorts. Nobody wants to keep milking his or her personal savings. However, it may end up being better than to accumulate fees or charges.

Author Bio:

Paydayloan.co.uk is an online lending company that has been providing financial relief to people since 1998. We have helped hundreds of thousands of people over the years. Visit our website for further information.