Home
>
Small Business
>
Five Quick Ways to Speed Up Cash Flow

Five Quick Ways to Speed Up Cash Flow

At one point or another, almost every business runs short of cash. Whether due to normal fluctuations in demand or an unexpected decline in sales, cash shortfalls are the bane of every company, and are responsible for sleepless nights for many business owners.

Yet, there are a number of simple ways that you can reduce your dependence on your company's line of credit and increase the cash that you need. Here are five no-cost methods to try:

Increase Receivables Collection Efforts: This is the easiest and fastest way to generate cash but, surprisingly, most companies do a terrible job of it. Start by calling all customers whose invoices are between 25 and 30 days old to ensure that they have your bill and to find out when it is scheduled for payment. These are the easiest collection calls to make and they often result in faster payment. And, it allows you to quickly rectify problems that may delay your check.

Get Payment In Advance: Another often overlooked technique is to simply ask customers for advance payment, or for a partial payment for goods and services. This approach is especially valid with large purchases, or on work where you'll incur significant expenses before being able to deliver the final product. Most customers will agree to such a request without asking any questions.

Invoice More Frequently: Many companies send out invoices once a month, typically at the end of the month. That gives buyers who purchased early in the month up to 30 additional days to play with your money. The frequency with which you prepare bills will depend on your business, but most companies can justify preparing invoices at least weekly.

Shorten Your Payment Terms: Most accounts payable departments schedule your payment based on the terms printed on your invoice. If you provide 30-day terms, don't expect to get paid before then. However, many customers won't even notice if you change your payment terms to 15 days, or request payment upon receipt of your invoice. You'll still have to nudge the same "slow pays," but your good accounts will probably process your invoice more quickly.

Accept Credit Cards For Payment: This isn't really a no-cost method, since you'll have to pay a service fee to the bank that clears the transaction. But, you'll get paid within days and eliminate much of the clerical support required to follow up on payment. Those savings alone often more than offset the service charges. And, your customers might even thank you for the frequent flier miles they pick up by using their credit card.

There is, of course, one other important way to quickly generate cash for your business, and that is to increase your attention to sales. In all but a handful of cases, increased sales will make cash flow problems disappear.

William von Achen is president of Strategic Management Resources, an executive coaching and management consulting firm offering advice and counsel to business owners and senior executives. For more information visit our web site at http://www.smrweb.com.

bathroom cleaning service Mundelein ...

In The News:

Uber teen accounts now feature live video streaming from the driver's camera, but encrypted recordings stay on Uber's servers for up to 14 days.

Router firewalls and software firewalls serve different roles in protecting your home Wi-Fi from unwanted traffic and suspicious connections.

A Chrome extension with 70,000 users and a 4.7-star rating began injecting fake update warnings after a threat actor acquired and weaponized it.

Amazon's Alexa+ rolls out free to Fire TV devices across the U.S., but hands-free microphones and stored voice data raise key privacy questions.

Meta's new teen accounts settlement sets a default two-hour daily limit on Instagram and Facebook, plus night mode and school mode restrictions.

The CareCloud data breach exposed Social Security numbers, banking information and medical records belonging to more than 3.75 million people.

Waymo reveals its custom 5-nanometer chip and dual computing systems designed to take over instantly if the robotaxi's primary computer fails.

Identity theft now includes account takeover, phone hijacking and payment card exposure. Here's what to look for in identity theft protection services.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

The FBI and Justice Department seized domains tied to QScan and QTRouter, tools allegedly used by China-linked hackers to breach NASA and other agencies.

Uber Eats drone delivery launches later this year through a Zipline partnership, starting in Dallas and Houston with a goal of one million daily flights.

Medicare Open Enrollment scams start with data broker targeting months before October. Learn why August is the time to remove your personal info.

The World Humanoid Robot Games' crashes show how far the technology still needs to go to be useful, "Survivor" reality TV star and robotics scientist Christian Hubicki says.

X-Humanoid's TianGong Ultra ran 100 meters in 9.32 seconds at Beijing's World Humanoid Robot Games, beating last year's winner by more than half.

A tap-to-pay charity scam is turning small $15 or $20 donations into charges of nearly $5,000, with victims losing thousands before they notice.

Kurt Knutsson shares seven emergency preparedness lessons from surviving Hurricane Katrina inside a New Orleans hotel as conditions turned desperate.

A contractor stored credentials in a Google Doc set to "Anyone with the link," and Google Search autocomplete eventually surfaced the password string.

New Orleans 911 uses Carbyne AI to triage repeat auto crash calls, but strict limits keep human call-takers in control of all other emergencies.

A single card skimmer can generate $1 million in stolen funds, and Secret Service video shows criminals installing them in under two seconds.

ChatGPT, Meta AI and Google now use memory, connected apps and past chats to personalize ads and responses in ways most users overlook today.

MagicalAuth by Glide.id uses cryptographic SIM credentials to verify bank logins without sending SMS OTP codes that scammers can intercept or phish.

A humanoid robot named Lightning Bolt ran 100 meters in 9.39 seconds at the World Humanoid Robot Games in Beijing, edging Usain Bolt's record.

An AI agent using Claude AI canceled another person's gym booking after finding a security flaw in the reservation system's authorization checks.

Trump signed a memorandum allowing vetted private U.S. companies to conduct cyber operations against foreign criminal organizations under oversight.

Your Social Security number appeared in a breach, but exposure and identity theft are not the same. Here's how identity restoration actually works.

Five Quick Ways to Speed Up Cash Flow

Small Business