Positive cash flow is the most important goal for any business. If it gets too low, you won’t be able to meet basic obligations like payroll and rent payments. This position also doesn’t allow you to pursue business growth. However, achieving positive cash flow is an ongoing challenge for many business owners. We offer some tips below based on our experience with previous customers.
Earn Interest When You Can
When you do have extra cash, you can turn it into even more cash by investing in an interest-bearing account. Money market accounts yield much higher rates than the typical savings account if you’re able to part with the extra cash for at least several months. Just think carefully about your investment if you’re concerned about liquidity and needing access to your money quickly.
Sell Unused Assets
Do you have a computer or two in the office that no one uses? How about extra office or parking space? If so, why not sell or rent to others to help increase positive cash flow. The best place to start looking for someone to buy or rent what you no longer need is your network connections in your own industry.
Negotiate for Better Terms with Your Suppliers
If you have been with a supplier or service provider for a while, you might be able to talk them into better rates. Most will at least consider it to reward your business and because they don’t want to lose you to another company that could potentially offer a better deal. Paying less to suppliers and service providers means having greater cash flow each month.
Consider Alternative Financing
When your cash flow just isn’t where you need it to be, it might be time to consider alternative financing options such as invoice factoring. This is just one of the many services we offer at Sudden Rivers Capital Corporation. Please contact us today to learn more.