Stallion Debt Relief

Dealing with cash flow can be a problem for many startups, small businesses and personal finances. Cash flow problems come from many different sources and can have a significant impact on the health of a business or household finances. The following are 20+ tips to help improve cash flow (mostly for businesses) in the short term:

Receivables/Customers

• Invoice as soon as possible.
• Stop services for clients who haven’t or appear that they won’t pay.
• Require up-front partial payment when starting a new contract.
• Regularly follow up with delinquent customers.
• Charge a fee for late payments.
• Accept credit cards for payment, if necessary.
• Offer discounts that entice customers to pay in cash. This helps move your cash flow in the positive direction.
• Set the payment expectations of new customers with a welcome letter.

Suppliers/Expenses

• Take advantage of discounts offered for early payment.
• If there are no such discounts, make payments to suppliers when invoice is due.
• Inquire as to whether suppliers offer extensions on payment terms.
• When possible, make payments by credit card.
• Avoid interest and penalties by making sure that credit card and loan payments are made on time.
• Look for possible deductions in current expenses.
• Change suppliers to reduce costs whenever possible and appropriate.

Other

• To generate cash sell extra inventory.
• Stop carrying the 20% of your inventory that takes the longest to sell.
• Reduce or suspend salary for owners until cash flow problems are resolved.
• Start a line of credit with your bank. There are many institutions you can go to for a loan for bad credit that have great interest rates and can give you an no credit check loan.
• Plan a budget to establish your long and short term cash flow needs.
• Take out short-term loans: To cover short-term cash-flow problems, loans from various financial institutions are often needed. Revolving credit lines and equity loans are types of credit used in this situation.
• Use automation wherever possible and use your human assets to add value and innovate.