If your business is experiencing cash-flow problems, it may be time to take an honest look at your business and how your operational management is affecting your costs.
Every business infrastructure needs to be reviewed and adjusted regularly. This is not something that should be overlooked. When you notice a shortfall in your working capital, perhaps try a different approach and inspect how you’re designating your money for you to then make decisions on what strategies or changes you need to make.
Here are 5 ways that can boost your cash flow management:
1. Create Customer Incentive Programs
If it is a constant battle for you to get customers to pay you on time and you hate having to chase them because you fear to damage a good rapport, why not implement an incentive and penalty program. Applying discounts to any account paid early or on time could be of interest and beneficial to your client, therefore improving your cash flow outlook. You will also be able to save on the time and resource costs of constantly having to confirm that payments have been received.
2. Invoice Finance
Invoice Finance or invoice factoring is a perfect example of how businesses in the UK with slow-paying customers can obtain short-term funding if they have outstanding invoices. Enlisting a factoring company such as Populous World can provide businesses with the working capital they need to bridge the gap between creditors when they stumble upon cash flow shortfalls.
3. Refresh Or Re-Price Your Product Line
Whether it’s a re-design, making new content, collaborating with a brand or creating promotion campaigns, these social marketing strategies can be just what your business needs to refresh and innovate a tired product line.
If you feel that you are selling your product for too little, try testing your product to see how the market responds to an increased pricing model without losing business to competitors. Find a price point that helps boost your cash flow while not resulting in lost sales.
4. Cut Costs
Re-assess and analyse the monthly running costs of your business and see where you can cut back on utilities, rent, expenses, payroll or marketing budgets. It is quite common that a lot of businesses are paying for services that they don’t even use or no longer need such as insurance or subscriptions. In short, you can improve cash flow this way by cancelling services that you are not using.
5. Re-Negotiate Long-Term Contracts.
If you have long-term contracts with suppliers or service providers, you could re-negotiate terms with those that you have a long-standing relationship with. Suppliers that you have a well-established relationship with may be willing to compromise on a better, more cost-efficient arrangement, especially if it secures you being a loyal customer for the long-term.
>> Is your business in need of fast, short-term financing? Do you need to access cash faster than your customers pay you?
Populous World is an Invoice Finance provider that unlocks working capital for UK businesses.
Bridging your business’s cash flow gap is something that Populous World excels in delivering, providing you with the funding tools to grow and sustain your business.