Whether your business is growing or struggling, managing your cash flow effectively is absolutely essential, and for many, its the key to business survival.
That’s why it’s critical to maintain a level of working capital that allows you to make it through those crunch times and continue to operate the business. Simply put, cash flow management means delaying outlays of cash as long as possible while encouraging your customers to pay it as quickly as possible.
Understanding cash flow:
Positive cash flow: This occurs when the cash entering into your business from sales, accounts receivable, etc. is more than the amount of the cash leaving your businesses through accounts payable, monthly expenses, employee salaries, etc.
Negative cash flow: This occurs when your outflow of cash is greater than your incoming cash. This generally means trouble for a business, but there are steps you can take to fix the negative cash flow problem and get into positive zone.
Easy Ways to Successfully Manage Your Cash Flow:
- Monitor your cash flow regularly.
- Cut costs.
- Cash in on assets.
- Get a business line of credit before you need one.
- Lease equipment instead of buying it.
- Stay on top of invoicing.
- Don’t let travel slow your invoicing.
- Get paid faster by using mobile payment solutions.
If your business needs working capital you can apply for a short-term business loan with First Down Funding
This post was written by fdfadmin