Alternative Ways of Increasing Your Company’s Cash Flow

Cash flow is the lifeblood of any business. When it dries up, so does your venture. There are many strategies for keeping company coffers flush. Here are some that you can put to good use.

Use Interest-Earning Accounts

Every dollar you have should be taken advantage of. Deposit as much money as possible into high-interest accounts. Funds can be transferred elsewhere shortly before bills become due.

Sell Unused Equipment

Technology quickly becomes outdated. Old computers and printers that are no longer being used merely take up space. Once you’ve upgraded, immediately sell what’s obsolete. The faster you act, the more likely you are to receive top dollar. Alternatively, be the one who’s buying older equipment. You don’t always need the latest functionality, and the savings can be enormous.

Mandate Deposits for Custom Orders

Make it a requirement that customers with special requests pay at least 50 percent of the cost upfront. Remind purchasers who balk that you are assuming risk by accepting their work. Advance deposits help mitigate the fallout caused by a customer’s sudden inability to pay.

Encourage Paying With Discounts

Incentivize clients to settle up in a timely manner by offering deals for doing so. A typical discount structure would be a two percent reduction in cost for fulfilling payment within 10 days. Adjust the deals you offer according to customer histories and your operational needs.

Penalize Late Payers

The flip side to sweetening the deal for those who pay is penalizing clients who don’t. Incorporate a fee structure into your contracts that will trigger after a period of time has passed. Be clear with your customers about this policy before they agree to a deal so that they won’t be surprised.

Create Subscription Sales

You may be able to charge recurring fees for certain forms of service. Examples would be a maintenance guarantee and access to exclusive products. With a successful subscription model in place, you’ll have a chunk of revenue that you can regularly depend on receiving.

Renegotiate Fixed Debts

You might be eligible for lower interest rates on debts or a longer payment schedule. Arrange meetings with creditors and see if they’re agreeable to providing more favorable terms. They want you to pay them back; therefore, they’ll likely agree to restructure your agreement so you can.

The variety of methods for increasing cash flow makes it possible for virtually any business to improve its financial resources. Use these suggestions and place your enterprise in a monetarily favorable position.

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