Nearly all businesses will encounter a cash flow problem at one stage in their life cycle. Fortunately for those businesses, most cash flow problems can be prevented with preparation, and the right strategy.
How to manage cash flow effectively?
Maintaining healthy cash flow does not come by chance. You need to actively manage your cash flow to more effectively control the inflow and outflow of cash both in the short term, and long term.
How can I improve short term cash flow problems?
1. Chase your debts
It’s not rocket science. Pick up the phone, speak to customers and ask them why they haven’t paid and when they’re going to pay.
2. Don’t rely on your bank
When your bank won’t extend overdraft facilities, talk to us about alternative ways of raising cash through funding and asset finance.
3. Consider factoring or invoice discounting
These can give you 90% of the invoice value immediately – ask us about how to make best use of factoring.