For small business, cash-flow can often be one of the greatest strains, both financially and emotionally.
Ask for an account
One way to help ease the stress is to ask your suppliers for a 30 day account. Having a 30 day account with your suppliers just makes good sense.
This will help balance out the strain on the bank account by receiving funds in from your clients before the need to make payments out to your suppliers. Make sure you utilise the payment terms offered, and schedule payment when due, this will help alleviate some financial stress and free up cash flow.
Remember, if for any reason you are unable to pay by the due date, and need a little more time to settle a bill, best to speak with your suppliers as this will maintain good relations. By having open & honest communication, most suppliers would be supportive and may extend your terms on a short term basis.
Follow up with debtors….regularly
Another thing that makes good sense is to have a regular follow up system with your debtors.
There are new apps available all the time that can make your life easier by sending out this regular follow up automatically for you. We all get busy and can forget to pay a bill on time and so receiving a friendly reminder can prompt us to go and get it sorted out.
You shouldn’t see this as a negative if you do it right in the first place and do it consistently.
If you haven’t got an automated way of following up your customers to remind them to pay, then speak with us and we can see what is the best options for your business so your cash-flow will flow easily again.