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.

after renovation cleaning Bannockburn ...

In The News:

Ahold Delhaize's cybersecurity incident knocked online ordering and digital coupons offline at Stop & Shop, Food Lion, Hannaford and Giant Food stores.

The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.

Amazon's About You feature includes personality details from your shopping history, and some shoppers are finding hilariously awkward results.

Identity theft recovery starts with securing bank accounts, freezing credit and enabling two-factor authentication within the first 24 hours.

Apple's $299 HomeView smart display uses facial recognition to personalize screens for up to six household members and show live security camera feeds.

Domonique DuBose spotted red flags when a man on Hinge with 85,000 followers and a blue checkmark claimed to be a San Francisco 49ers player.

Your phone's location data can expose visits to doctors, pharmacies and places of worship. The FTC took action against data brokers selling this data.

Hackers targeted Danfoss refrigerator controls across French supermarkets, forcing chains like Carrefour and Monoprix to discard massive food stocks.

iOS 27 finally lets iPhone Shared Albums store photos and videos at full resolution in iCloud, but new items count toward the owner's storage.

A fake Facebook Marketplace text scam uses your real name as the seller to trick you into replying, and Malwarebytes warns even one response helps.

The Pentagon data breach exposed 2.76 million Social Security numbers and military records, raising long-term identity theft concerns for veterans.

Kodiak AI plans to haul IKEA freight on Texas highways with no one in the cab, raising urgent cybersecurity and safety questions for drivers.

Apple Intelligence in iOS 27 adds Extend and Reframe tools to Photos, letting iPhones generate new background areas beyond your original borders.

Microsoft's X account was hijacked to promote a crypto pump-and-dump scheme, exposing its more than 13 million followers to a scam campaign.

Scammers can combine your name, phone number and address with data breach details to attempt SIM swaps, phishing and even identity theft schemes.

ChatGPT Work, Meta Muse and Gemini Spark can monitor flight prices, sort your email inbox and track important deadlines, but savvy users start small.

iPhone, Samsung Galaxy and Google Pixel each hide a built-in tool that turns a video frame into a separate photo without any screenshot needed.

Operation KillSwitch dismantled KillSec's ransomware infrastructure, but investigators say a 16-year-old allegedly ran the entire cybercrime operation.

The Fox News Artificial Intelligence newsletter covers where voters will decide on AI data center ballot measures and Jeff Bezos' tech vision.

Apple's Impersonation Risk Detection in iOS 27 can flag suspicious activity inside apps, but the setting is off by default and must be enabled.

Federal Election Commission records can expose your name, address, employer and donation history once contributions exceed the $200 threshold.

Cybersecurity expert Morgan Wright says human skepticism remains the strongest defense against AI-driven phishing scams and voice cloning fraud schemes.

iPhone, Google Pixel and Samsung Galaxy each handle security updates differently, and one screen saying "up to date" may not tell the whole story.

Deborah Del Mastro heard what sounded like her daughter's terrified voice on the phone, launching a five-hour virtual kidnapping scam ordeal.

Hotel TV privacy risks go beyond forgotten passwords when you sign into Netflix or other streaming apps on shared devices you don't control.

Five Quick Ways to Speed Up Cash Flow

Small Business