SimonStapleton.com

Effective Solutions For Fast Cash Flow

Estimated reading time: 2 mins

Whether you are a self employed freelancer, managing a lucrative career from home, or the CEO of a thriving SME, you likely don’t need to be reminded of why cash flow is important to your business. All enterprises rely on a healthy interplay between credit and debt. If your debtors don’t pay you on time, you can’t pay off your creditors. Moreover, you’re left unable to invest seed money in your business which could facilitate the capital investments that could take your business to the next level. Although all businesses face a cash flow crisis from time to time, some are more severe than others. There will be times when despite your battle to keep down unnecessary overheads and your total transparency with lead times and invoicing, your business will be left with a temporary dearth of liquid assets.

Fortunately, there are a number of ways in which you can bounce back quickly without any detrimental effects on your business…

Business credit cards

If your cash flow needs are relatively modest, you could find that business credit cards are an effective way of digging yourself out of a fleeting rut, giving you the liquidity you need to stay agile and take advantage of a bargain batch of stock or a tool that will improve productivity. Although you may not be extended the same amount of credit or competitive interest rate of a loan, business credit cards can be very useful as long as you factor the interest rates of your repayments into your monthly costings.

They’re also useful for quick credit as many lenders issue the credit card number upon the point of approval so you don’t even need to wait for the card itself to arrive in the post.

Bridging loans

If you’d rather steer clear of credit cards, a bridging loan may be a perfect way to lay your hands on quick cash to keep your business afloat. Bridging loans are fairly admin light, meaning that they can be approved and transferred into your business account far faster than other forms of business loan. Be wary, however. This speed and efficacy comes at a cost of high interest rates. Bridging loans are only useful if they can be paid off quickly. This makes them perfect for businesses that have a big pay day coming but the client is running a little behind on making payment.

Invoice factoring

Speaking of late paying clients, they are an unavoidable part of doing business. Most of the time, the reasons behind late payments are fairly innocuous, and only very rarely will a client demonstrate a total inability or unwillingness to pay. Using a service provider like this factoring company is a great way to get instant payment for outstanding invoices. If your client is only a day or two late in payment but you have bills that need to be paid today, it’s the perfect solution.

Quick sales

If you have a whole lot of stock but are struggling to shift it in time to pay your debts, it’s time to throw a quick sale. Promote your special rates on your online presence and watch bargain hungry customers roll in. Sure, you might take a hit on your profit margin, but a lot of sales at low margin are better than no sales at a high margin. Plus, so long as you’ve made efforts to retain this influx of new custom, you’ll see them come back even when your prices go back to normal.

 

About the author /


Simon is a creative and passionate business leader dedicated to having fun in the pursuit of high performance and personal development. He is co-founder of Applied Change, a Business Change consultancy based in the UK. Simon is also an Ambassador for Gloucestershire business. Simon is an Associate Member of the Chartered Institute of Professional Development.

Post your comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Affiliate Promotion

simonstapleton.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. Amazon, the Amazon logo, AmazonSupply, and the AmazonSupply logo are trademarks of Amazon.com, Inc. or its affiliates.

Polls

When answering Employee surveys, do you always answer completely honestly?

View Results

Loading ... Loading ...
SimonStapleton.com located at Watledge , Stroud, UK . Reviewed by 18,205 readers rated: 9.8 / 10
My latest book: ACE Your Performance Appraisal$4.99 on
How Am I Doing?

Did this discussion solve your problem?

Then please rate this post or leave a comment.