How to control your business cash flow

Unfortunately, since the credit crunch many businesses are struggling to stay open and in business. Managing cash flow is important at all times, but never more so than when the economic climate is looking dull with no imminent signs of improvement. Controlling your business cash flow is relatively straight-forward and something you should try to do yourself if possible. Larger companies may benefit from a financial planner or cash manager to oversee things.

One of the first things you can do to try and control your business cash flow and achieve a steady income is to add to your revenue stream. The more clients or customers you have, the more chance you have of increasing your cash flow and the less chance you have of a lost customer letting you down. If you sell a product, diversify and sell similar products or accessories to your product. You should also attempt to cut back on your outgoings as much as possible. Stop any services you do not need and if you have any outstanding debts owed to you than you should actively pursue these.

If you have any excess cash you should consider investing it and attempting to add to whatever you invest. Advice from a reputable investment manager will ensure any investments you make are sound. If you take sales with credit cards, you can ask for something called a Merchant Advance. This is when a 3rd-party from the credit card company comes in and reviews your takings. They will then offer you a advance on capital, which you pay back when you receive future orders.

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