Looking for ways to boost your business cash flow? Use this checklist to see if you are using best practices to keep the cash flowing.
- Invoice immediately after you deliver goods or services
- Consider shortening your payment terms - to 30 days from 60 days, for example
- Offer a small discount to customers who pay their bills early and charge a penalty to those who pay late
- Do a financial check on new customers before offering them credit. Also check their business references
- Monitor your receivables on a regular basis and follow up with late payers when appropriate
- Use your business credit card to pay suppliers
- Work with an accountant to analyse your cash flow
- Consider a line of credit to cover short-term needs and emergencies
- Put your excess cash to work in a high-interest savings account
Looking to develop the right strategies to maintain a healthy cash flow? Read up on ways to boost your cash flow.