| Every business owner knows that when it comes to | | | | budget and schedule payments to maximise the |
| financials - cash flow is king. It doesn't matter how | | | | amount of cash you have in hand. Plan for seasonality |
| many debtors and creditors are on your balance | | | | and variances in incoming funds. Smaller monthly |
| sheet, your day-to-day operations depend on cash. | | | | payments are generally cash flow friendlier than large |
| When it comes to maintaining a healthy cash flow, | | | | outright purchases, so operating leases and other |
| good financial management is key. You'll need to | | | | forms of asset finance are great ways to manage |
| accurately forecast for the future and make sure | | | | your capital acquisitions. Make note of your debtors |
| ensure you have cash in the bank. Here are some | | | | and determine which ones are more flexible with |
| tips to bear in mind: | | | | offering an extension on payment. |
| 1. Collect - many small businesses can do much to | | | | 3. Respond - of course the nature of business is |
| improve their incoming cash by simply following up | | | | unpredictable, and there will be plenty of moments |
| with their creditors and collecting on receivables. | | | | that you'll need cash. Short term loans can help in |
| Ensure you send invoices to your clients in a timely | | | | these instances so maintaining a good relationship |
| manner and send follow ups and reminders regularly. | | | | with your on-going lending institution is a good idea. |
| Merchant facilities will make it easy for your clients to | | | | Meanwhile, speaking regularly with multiple lenders lets |
| pay you - consider setting up credit card payment | | | | you compare rates and find the best option for your |
| with your bank, requesting a retainer before | | | | business needs. |
| commence a job or offering a discount to clients | | | | Finally, make sure your business isn't affected by bad |
| who pay early. | | | | business. Doing a quick credit check on new clients |
| 2. Manage - budgeting is vital to small business | | | | will ensure that they good credit history - so you'll |
| success. Prioritise your current and future expenses | | | | know that you'll be paid on time. |
| to fit your cash flow forecast. Stick with your | | | | |