CASH FLOW AND DEBT MANAGEMENT Business owners are constantly reminded of the frightening statistics surrounding the number of businesses that fail due to poor cash flow. Successful cash flow management involves regulating the money flowing in and out of your business. An increased, consistent cash flow is not only the lifeblood of a business, it also creates a predictable business pattern, making it easier to plan and budget for future growth.
The faster your receivables turn over, the more capital you'll be able to spend on growing your business.
Here are a few tips to better manage your cashflow:
Invoice early and often
Shorten your terms from 30 days to 21 or 14 days. You'll get paid earlier - before your supplier's bill is due!
Regularly chase outstanding debtors
If you use credit terms, enforce them
Check your procedures for reviewing credit rating of new customers
Issue monthly statements
Telephone contacts with old debtors may give better results than reminder letters
