By now you know how important it is have a positive cash flow in your company Not all companies have the financial capacity to deal with suppliers, make an investment or simply pay bills, even though sales have been great in recent months. In today's post, we are going to give you 10 keys to improve your Cash Flow and that you can have liquidity at any time.
10 quick and easy actions to improve your Cash Flow
If you are still not clear about this concept and you want to inform yourself, you can read our article “What is Cash Flow”, where we also tell you how to calculate it.
In addition to dealing with debts, Cash Flow indicates the possibility of making an investment, which can be used to improve your products or services, expand your business, etc. However, the reality is that many companies find it difficult a lot of effort to make sure more money goes in than goes out. Next we are going to present some strategies that work to generate a Positive Cash Flow.
Make sure your customers' payments are made when they are due
This is one of the big problems that causes a negative Cash Flow, even though the sales results are good. The late payments of your customers cause this situation, so you should plan a good collection strategy in detailThis means offering different payment methods, offering them facilities such as an electronic payment method, or simply investigating your clients before reaching an agreement with them.
Other strategies that can also work is the collection of a deposit or set contract clauses referring to late payments. With time and experience you will learn how your clients behave and it will become easier for you to carry out these strategies.
Know and anticipate the situation of your business
It is necessary to anticipate the situation of the company in the short term, know what you may need to offer what you want to offer your customers. It is important to know your limits, and study whether it is possible to make such an investment or cover such expenses to achieve a goal.
This will help you get to know how your cash flow is generated, which are your most valuable customers (those who pay on time and do not demand more than agreed), and to what extent you can make an investment or spend x in a certain period of time.
Avoid unwanted customers
In the B2B sector, business agreements have a period of time to gestate, to reach an agreement and decide on how the service or product delivery is going to be developed. In that time, you must Assess if that client is ideal for your business.
Sometimes companies choose to carry out commercial operations regardless of how the client is, however this point must be taken into account, since you can run the risk of not charging for the products or services you offer, and thus cause a major liquidity problem.
It seems silly, but the save from time to time It can in the future get you out of a bad situation without your company being affected by it. Control the expenses you have, and always ask yourself the question that we all ask ourselves before carrying it out: is it really necessary for my goal?
Take advantage of discounts for advance payments
In some of the agreements with your suppliers it is possible that there is a term that applies a discount to your payments if they are done before a certain date. Taking advantage of these discounts can go a long way, especially if you are a reputable provider.
Review your pricing strategy
The prices are not fixed, vary according to certain factors and one of them the moment and the general situation. This can help you generate more liquidity and have it available when you need it.
Don't be afraid of losing customers by raising your prices. If your products or services are of high quality, then your customers will be loyal. The fidelity does not lie in price, but in the service provided, treatment and trust.
Choose the payment options to your suppliers that best suit you
like you offer payment facilities to your clients, your suppliers they will also offer them to you. You just have to choose the one that best suits your needs. Sometimes providers may offer split the payment in several times without interestdepending on factors such as age.
Choose providers that offer better services at better prices
It is not too much to remember. Do not stagnate with your suppliers, investigate which company that you did not know can offer you something better. Every year thousands of companies appear looking for business opportunities that you can take advantage of.
Taking advantage of offers is a good idea, but keep in mind that you should not buy more than you need if your financial capacity is reduced. This advice is closely related to controlling expenses.
Research other sources of funding
The alternative funding sources are one of the current trends to offer companies, especially small and medium-sized companies, to advance and expand their business.
Find out about our sources of financing beyond banking. We offer solutions for companies that need immediate liquidity and speed in procedures.