Seven things to do to help improve your cash flow in 2018
Sales are key to any business but cash flow can scupper even the most profitable business...you need to pay salaries, buy assets, and pay the bills and rent. Slow cash flow can severely restrict growth and many companies are forced to slow to ensure that they can keep the lights on.
If you're looking to grow your business in 2018 these seven tips will help you convert sales to cash as soon as possible giving you the best possible chance to grow whilst remaining solvent.
1. Raise bills straight away – the sooner you issue an invoice the quicker you get paid.
2. Keep on top of the unpaid bills – chase them up on a regular basis
3. Have a system in place for chasing unpaid debts, standard letters and emails go a long way to reminding people.
4. Don’t be embarrassed to follow up – people who owe you money will be expecting to be chased.
5. If someone still doesn’t pay you, use a firm of lawyers to send a ‘letter before action’
6. Remember that a customer who doesn’t pay is not really a customer, but someone who has borrowed money from you. If you upset them you didn’t want them as a customer anyway.
7. Be brave enough to turn work down when you know you will struggle to get paid.
If you are having cash flow issues please get in touch with our Managing Partner Melanie and we can advise you on the best course of action.
Melanie Richardson - Managing Partner
If you’d like to learn more about our approach to working with clients get in touch with Melanie directly on:
Tel 01825 763366
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