How can I improve cash flow in my business?
Invoice promptly, make payment terms clear, follow up overdue debts consistently and remove unnecessary friction from the way customers pay. A sale isn't useful cash until the money reaches the bank.
Get money in quicker
Invoice promptly, make payment terms clear, follow up overdue debts consistently and remove unnecessary friction from the way customers pay. A sale isn't useful cash until the money reaches the bank.
Be sensible about when money goes out
Review supplier terms, stock levels, subscriptions and planned purchases. The aim isn't simply to delay every payment; it is to avoid cash leaving earlier than the business needs or receives value.
Make sure margin isn't the real problem
Poor cash flow is sometimes a symptom of weak profitability. If prices are too low or direct costs are rising, chasing customers faster will not fix the underlying problem.
Use the forecast before making changes
A rolling cash forecast helps show which changes will make the biggest difference and whether a short-term squeeze is temporary or structural. Fix the cause rather than only the bank balance.
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