How Small Business Owners Can Increase their Cash Flow
Does your business struggle with cash flow management? Keeping your liquidity level manageable is a common concern among small business owners. Having access to cash can not only keep a company running smoothly, but it can also enable it to expand and grow when there are opportunities. Here are several ways that small business owners can increase their cash flow and produce a healthier bottom line.
If your business needs more cash, a good starting point is to look at reducing some expenses. Are you wasting money on unnecessary supplies or expensive equipment? One way to save money is by leasing equipment instead of buying. If you must buy, look for a local source to purchase used or refurbished equipment at a discount.
Ask for Early Payments
If you’re short on cash because you’re waiting for others to pay you, there are ways to speed up those payments. First, you can offer incentives to vendors and customers for fast payment. You can also make it painful to pay late by imposing and enforcing penalties.
Another option is to use a factoring program, which is a way to receive an advance on your company’s outstanding accounts receivable. There are some requirements to qualify for factoring, but this is an excellent choice if your business meets the criteria.
Hire a CPA
Accountants might cost money, but their services can save your company a significant amount of cash. CPA’s have the skill and expertise to review your company’s revenue and expenses and then provide you with valuable insight. Your company’s CPA can also help you plan for the future and avoid potential cash flow problems.
Cash flow can be a serious challenge for any business. If your company needs access to capital to finance growth or operations, contact Growth Lending Group at 203-349-8584 now to learn about the ways that our alternative financing solutions can help.