Cash flow is a critical life force of every small business (SME). So it is important to pre-empt and address any potential cashflow problems before they strike. This is important so you can manage a loan. That is why we have put together three top tips to proactively conquer cashflow problems.
For any cashflow problems you do not catch in advance? Well there are Capify small business loans, designed specifically for SMEs and offering fast approvals, fixed daily repayments and minimal paperwork.
Tip 1 to conquer cashflow problems: team up with technology
Cashflow management is driven by having the right information at the right time. Technology can be your key partner in achieving success in your small business.
Bring online or cloud-based accounting systems onboard in your SME and your cashflow forecasting can really be ahead of the pack.
Real time visibility of your SME finances is kryptonite to cashflow problems. Perhaps you are concerned about dipping into your SME cashflow to invest in such technology.
You do not have to. Put a Capify small business loans to work and you can enjoy that real-time cashflow visibility without sacrificing important cash upfront.
Tip 2 to conquer cashflow problems: be discerning with debtors
For SME(small business) owners, customers can be the source of either cash flow ease or cashflow risk. Any unpaid debt is cash that could be in your small business loan and should be, but isn’t. So what is the answer? Be discerning when it comes to debtors. Do some due diligence on who is going to owe you money. Talk to industry counterparts, tune into your instincts when you meet customers and use smart processes to support good cashflow health. Favour upfront payment options and progress invoicing then be sure to proactively follow up late payers. Small Business Loans.
Tip 3 to conquer cashflow problems: plan ahead small business loans
Forewarned is forearmed. If you already know precisely how to respond to cashflow problems, you will never be caught unawares. So be sure to perform regular cashflow forecasting and continually monitor how your true cash position measures up against your forecasts. Complement forecasting with contingency planning. That way no matter what happens, you will have your strategic next steps already at the ready.
A cash flow statement can be one of the most important tools in managing your finances. “Tracking all the money flowing in and out of your business and can reveal payment cycles and seasonal trends that require additional cash to cover payments” says Inc magazone
Your SME can face any cashflow problems with confidence. Capify small business loans give you the cash you need to really get your SME humming.
Or call 1300 760 930 to speak with one of our friendly lending consultants now. And watch your small business grow.
More like this
Cash is king: 3 tips to effective cashflow management in a small business
Cashflow is the lifeblood of every small business. That makes cashflow management a key determining factor in whether a SME sinks or swims. Essentially cashflow is the movement of funds in and out of your business. So cashflow management is about ensuring that you have a firm handle on your […]
What is Cash Flow? Cash flow is the term used to describe the movement of money in and out of a business account every month. There are two different types of cash flow, positive and negative, and yes, you definitely want to aim for positive cash flow if you […]
Seasonal shoppers are vital to many retailers. To really capitalise on your seasonal shoppers, smart inventory planning is a must. That way you can be sure you access funding to have sufficient stock to meet sales demands without running the risk of over-stocking and having to sell off the excess […]