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Don’t Fall Victim to a Cash Crisis

Sarah Bean - Tuesday 09.08.17, 16:36pm

When times are hard, Cash is King.  Follow our Top 10 Tips to keep your cash flow healthy.

1. Credit check your customers before extending credit, or when increasing their credit limit.  If in doubt insist on payment up front or by credit card.

2. Charge a deposit at the time of order. This is particularly important if you will incur significance expense, or if the goods or services are bespoke.

3. Issue invoices to arrive as soon as work is completed, or time them to arrive at the same time as despatched goods.

4. Offer incentives, such as discounts, for prompt settlement.

5. Start to chase payments the day they become overdue.

6. Use invoice finance to release the value of your invoices from Day 1.

7. Check your bank account regularly and keep a rolling cash flow forecast.

8. Give yourself time. Act to secure funding as soon as you have identified a need.

9. Analyse your stock requirements and avoid tying up any more cash than you have to.

10. Explore ways to cut back on outgoings without impacting negatively on your business. For example, Skype meetings rather than travel to them, switch to a cheaper utility provider or reduce your ‘phone tariff. Encourage your staff to suggest money saving ideas.

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Tags: Cash Flow

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