Nowadays cash can be key to survival. At Entrepreneur.com, “Creative Ways to Get the Cash Flowing”, details creative ways to maintain cash flow.
Use the following cash flow tips from Tom Long, founder of Solid Oak Consulting:
- Make a Careful and Detailed Projection: Do this before you make any changes to improve cash flow. Rather than relying on accounting software, try an electronic spreadsheet like Microsoft Excel.
- Don’t Delay Bill Payments: Long says this will lead to “all kinds of challenges and problems.”
- However, Don’t Pay Bills Early: Unless there is a discount for doing so.
- Call People Personally to Request Payment: Long says it can be more effective for an owner to call, since it gives the matter more urgency.
- Consider "Factoring" Your Invoices: Factoring is when financial institutions buy receivables for a discount and then take over collections. While large companies have embraced it, small ones have hesitated. Long says it is just another form of financing to consider.
- Learn more about "Factoring" from our "Factor In Financing" Tip.
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