Manage the cash flow of your business successfully

Whether it’s a multi-billion dollar conglomerate or a start-up, cash is the lifeblood of every business. As money is defined as a ticket to transact business, it is important in our daily business activities. Just like today’s economic crisis, when old businesses are losing their lifeline, many more businesses will collapse their assets because they didn’t recognize the importance of their cash flow.

What about the uncertain economy with fluctuating interest rates, bank failures, limited financial literacy, and all of this comes as a result of poor cash management? Many underestimate the power of cash flow in the business organization and, as a result, retire never to get up again.

Therefore, your cash flow must be steady if you are to survive the rules of the business game. And that’s why here are some facts to help you increase your cash flow.

-Speed ​​up customer orders by having customers fax their orders.
-Send your invoices the same days the products are shipped.
-Indicate in your invoices the due date of the payment and especially the interest on arrears.
-Deposit always the same day that are not before.
-Use business credit cards or credit cards for travel, lodging, meals and small expenses for you and your employees.
-Follow up on defaulters with phone calls and letters.
-Do not offer too generous discounts.
-Review the financial health of new customers before offering them credit.
-And consider this, ‘if you can get your cash faster and pay it out more slowly, you will prosper’.