how to effectively manage cash flow

8
How to effectively manage cash flow

Upload: triton-capital

Post on 13-Apr-2017

231 views

Category:

Business


1 download

TRANSCRIPT

How to effectively manage cash flow

Positive cash flow

Negative cash flow

You have more cash funneling into your business from sales, accounts receivable, etc. than leaving your business from accounts payable, salaries, monthly expenses, etc.

You have more cash leaving your business than you have coming in. It’s best to avoid this situation, but there are steps to fix it by cutting costs and increasing cash flow.

+

-

Basic ways to increase cash flow

• Improve receivables

• Increase sales

• Secure a business loan

• Manage payables

Steps to improve receivables

If we could all get paid immediately, maintaining cash flow wouldn’t be much of an issue. Unfortunately, that doesn’t typically happen, but you can implement these tried-and-true tactics to speed up receiving what you’re owed.

• Offer discounts to clients who quickly pay bills

• Ask clients to make a deposit at the time of purchase

• Require credit checks on all new non-cash customers

Steps to increase sales

Increasing sales is easier said than done, especially when cash is tight. Although customer acquisition is crucial to growing business, it can take time and money to convert prospects into sales. Instead, sell more to existing customers.

• Analyze what’s selling and why

• Improve/expand best-selling products

• Enhance customer service

Steps to manage payables

When you increase sales, you increase expenses - in supplies, labor, and other costs. If your company is growing, it’s easy to overlook these, so make sure you:

• Take advantage of creditors’ payment intervals

• Carefully consider lowest cost vs. flexible terms

• Use electronic funds to pay on last day of term

Steps to secure a business loan

Using a business loan allows you to turn total invoices and expenses into manageable monthly payments. You can use working capital to pay for everything from supplies to taxes to employees’ salaries. Alternatively, equipment financing puts your equipment to work for you, covering its expense as it makes your business money very month. You can use loans to:

• Maximize total capital you have available • Only pay for expenses when you can • Obtain contracts and business growth

How can we help you manage cash flow?

If you’d like to learn more about effectively managing cash flow, our client advocates are here to help you.

• Call for a free consultation: 877.822.1333 • Visit us at tritoncptl.com • Take control of your cash flow today!