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 early 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 interest on late payments.
• Allow for credit cards payments, when needed.
• Provide discounts to incentivize customers to pay in cash. This will help move your cash flow in the positive direction.
• Establish payment expectations of new customers in your welcome letter.

Suppliers/Expenses

• Make use of discounts offered for early payment.
• If there are no such discounts, make payments to suppliers when invoice is due.
• Ask suppliers if payment terms can be extended.
• Where possible, make payments by credit card.
• Ensure that credit card and loan payments are made on time to avoid interest and penalties.
• Review current expenses to see what can be reduced.
• Compare prices and switch to cheaper suppliers where possible.

Other

• Sell excess inventory to generate cash.
• Stop carrying the portion of your inventory that takes the longest to sell.
• Reduce or delay salary to owners until cash flow improves.
• Open a line of credit with your bank. There are many institutions you can go to for personal credit that have great interest rates and can give you an fast loan.
• Create a budget to identify your short-term and long-term cash 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.