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23 + 1 Ways to Improve Your Cash Flow

Yes, I know you’re finding it more and more difficult making collections, imported supplies cost more and GST refund is not fast enough …

Obviously, all this puts pressure on your cash flow. And we all know, cash flow is the life blood of any business.

So, in this issue, here are some idea joggers for you to improve your cash flow – treat it as a checklist. Some may work for you, some may work for others …

  1. Set specific targets for your days’ receivables, your days’ payables and your stock turns
  2. Set par levels before ordering more inventory
  3. Carefully project inventory needs
  4. Try to increase Cash Sales
  5. Send out invoices immediately
  6. Send out past-due notices after 14 days, not 30.
  7. Develop a Receivables follow-up System
  8. Explore hiring a factoring firm
  9. Hire a collections agency for seriously overdue accounts
  10. Offer special sales on slow moving /obsolete stock
  11. Phase out items that aren’t selling or aren’t profitable or aren’t leading to other sales
  12. Offer bulk sales to increase inventory turns
  13. Take a down payment on all financing deals
  14. Send all invoices accurately the first time
  15. Never let perishable inventory reach expiry
  16. Appoint one person accountable for payment due.
  17. Appoint one person accountable for tracking inventory levels and turns
  18. Be polite and friendly during follow up
  19. Look at sourcing debt, investment capital or financing
  20. Weed out or reduce trading with slow-paying customers
  21. Find new vendors with more flexible payment terms
  22. Update your cash flow projection weekly / monthly
  23. Review your Receivables report everyday for overdue accounts
  24. Find creative ways to get customers in slow or down times

Now time to implement. Drop me a line to let me know which is your favorite – would love to hear from you.