YOUR NOT ALONE
During this current situation all businesses are facing now all will suffer from cash flow problems at one point or another. Below you will see FIVE top key points to help you stay on top. Review business finances and make a plan Carry out a review of all outgoings and incoming revenue to see where savings or improvements can be made. Plan how you will adopt changes and use tools such as cash flow forecast to keep tracking. Know your customers Your Customers, especially if they are businesses, will have different payment habits. Ensure to look over your credit checks on your customers, Having your customers payment history and habits can give you more control over your incoming revenue and how to handle them. Encourage payment on time Receiving payments faster will boost your cash flow, consider the time window you give your customers to pay. Look at different payment options that suits both parties. Ensure to keep a good relationship going and remind them you value them as your customer. Know your suppliers and payment terms Utilise payment terms, understanding your suppliers payments terms helps improve cash flow. If their terms are 30 days then wait until then, if no discount is offered for early payment then there is no gain in paying earlier. it is better to have money in your account for longer. Communication is key Managing cash flow can be hard at the best of times and especially now during this unprecedented time all businesses are facing. It is essential you maintain regular communication with your customers and suppliers. Failing to respond to emails and phone calls will only make the situation worse, although it can be daunting, being upfront and honest goes along way and keeping communication open you might be surprised by their willingness to extend the payment terms or come to some other arrangement. Don't hide from it face it...