Ideas to improve your businesses cash flow

Whether you’re growing a small business or managing your household budget, having cash ready when you need it is an essential precondition for financial well being. For small business financing, it’s what lets you keep the engines of your operation humming, gets you through difficult times and allows you to take advantage of any opportunities that may come your way.
Consequently, maintaining healthy small business cash flow is vital. Here are some small business finance tips to help keep your company running smoothly:
Start with your expenses

Knowing what you spend is an obvious place to begin. Evaluate the services you pay for at least once a year to see if you can find better-priced options. Often you’ll discover there are new plans or deals available. At the same time, look into offerings from other service providers to save. Finally, talk with friends and fellow small business owners about the services they use and any deals they receive.
Look at your collections

Invoice as soon as you can to keep cash coming in. Using electronic invoices can speed up the process. Offer various payment options, such as checks, credit cards or electronic funds transfer. Instead of putting “Due on receipt” on your invoices, include specific dates. Consider offering a discount for early payment.
Reexamine your pricing

Are you accurately accounting for all your expenses? Consider the cost of goods, utilities, rent, payroll and any other costs. If some products attract more customers than others you may want to price them competitively to draw customers to your business. At the same time, see if you can sell other items for higher profit margins.
Do you know your credit rating?

If you’re applying for small business financing, you can be sure your bank does. Part of ensuring a healthy small business cash flow means easy access to financing if you require it. Keeping up your credit score can help improve your chances of accessing additional funds if you need them and give you lower rates on those funds. To improve your score, pay bills on time, update your information and keep up with your score as reported by lenders.
Expand cash reserves

Unfortunately, unexpected expenses are part of running a small business. Dealing with them quickly and on your own terms can mean the difference between a highly successful bottom line and a disappointing financial outlook. Develop a plan to have money set aside to deal with the unexpected. Ensuring a strong small business cash flow is a vital part of a thriving business.