Improve Cash

Collection

Forecast Regularly

Analyse Expenditure

Extend Payment

Terms

Cash Flow Management

Made Simple

Most small businesses only just manage to keep their heads above the water.

They struggle to pay employees and debtors.

If they followed a few simple steps they could:

Achieve financial freedom

and spend money on revenue generating projects.

Top tips to keep your cash flow positive

Keep your suppliers to a

minimum, it is better to

have a few key

suppliers.

Use your increased

spending power to

leverage better

payment terms.

Set up a robust

payment authorization

process.

Pay suppliers on time,

but not earlier than

necessary.

If possible pay your

suppliers after you have

been paid by your

customers.

Credit check all customers before doing business with them

Offer a discount for early payment

Consider a factoring company to guarantee fast payment

Make sure that your payment terms and payment due date

are on every invoice you issue.

Run a report on all outstanding debts on a weekly basis

and pursue all outstanding debt.

Get senior management involved in cash collection

process with long-term debtors.

Provide your customers with as many payment options as

possible.

Consider ending your business relationship with customers

with a bad payment history.

Small Businesses should forecast their cash flow at least on a weekly basis.

When preparing a cash flow forecast you must remember cash and profit are not the same thing.

You could make a profit, but still lose money.

Your cash flow forecast should contain an estimate of when you think will be receive money into your business and when you will have to pay out.

Each week or month you should review the forecast against your bank statement.

This will help you pick up on any variances or discrepancies and will improve your forecast in the future.

Contact Us for help with Managing Cash Flow

www.arinobe.com

+44203 286 7829

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cashflow@arinobe.com

+447825 002 908

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