KEYS TO EFFECTIVE CASH FLOW MANAGEMENT (February 19, 2020)
Good cash flow the lifeblood of a business and can be challenging at times, especially when you are growing or faced with the unexpected. Here are 10 things to help effectively manage business cash flow.
- Always remember cash is king!
- Lack of cash flow makes business go bust not profits.
- Invoice for your goods and services in a timely and regular manner.
- Get paid promptly within the credit terms.
- Don’t be afraid to follow up overdue customers.
- Offer a discount for early repayment
- Negotiate supplier credit terms
- Plan well, business plans, this will make you accountable and make decisions on your business.
- Have cash flow forecasts
- Always have a back-up plan that will provide cash flow when you need it, such as an undrawn bank facility or an invoice discounting facility.