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Improving cash flow into your business

If you are a small business you may find improving your cash flow to be something of a challenge. However, there are small things you can do, that should help your situation. First of all, you need to ensure you bill customers and clients, and anyone else who owes you for services rendered, promptly. If you ensure you bill people in a timely fashion and regularly, you should see your cash flow improve and remain at a steady flow over time. If your cash is very low, don't accept more trade until you have sorted your finances out. While accepting as much work as possible may seem like a surefire way of improving your cash flow it doesn't work. If you accept work you cannot complete because of lack of funds and resources this will damage your reputation and possibly close your business.

If people owe you money, ensure you follow these debts up. Make a note of who owes you money and how much and make up individual letters for each one. If you still have money outstanding after trying every reasonable avenue to recover it, then you may want to consider a debt collection agency. You can get a number of services from this type of agency and many do not charge you until the debt is recovered in full. You can also try improving your cash flow by asking any suppliers or dealers you trade with to up any credit limits you may have. Adjusting the day you have to make repayments to when you know you will have finds available will also help a little.

If you do not see any improvements to your cash flow over a period of six months you can consider selling some of your assets. Before you do anything you should seek the advice of a professional business financial adviser who will be qualified in giving you advice regarding improving your cash flow.

 

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