Keeping your cash flow secured is crucial for starting businesses. Running out of money in your account as your production expenses with low demand or sales can hurt you in the long run. Monitoring what flows in and flows out is always a good way to begin managing your finances. However, there are also other smart things you can do to prevent from running out of cash.
Here are five ways to maintain a steady cash flow in your accounts:
1. Cut Costs
Your cash will surely stay in your accounts when you stop spending on things that aren’t giving you the best deals in your business. Try checking your subscription, utilities, and any other source of expenses that you may no longer need.
If you have been leasing for a long time now, perhaps you can negotiate a discount on your rent with your lessor. You may also rethink your delivery services and gas or transportation costs.
Tracking your business expenses to know where to cut costs is surely a great way to start in keeping your cash flow running.
2. Get faster payments
You can take advantage of technology by creating a mobile application for your business where your customers can pay their orders directly. You can use other readily-available apps such as Paypal, bank apps, or GCash for quicker money transfers.
By doing so, you can ensure that payments for your goods and services are received fast and securely, as these services instantly provide receipts. You can also ask for down payments easily, as your customers can track their purchases as well.
Securing your cash flow requires hassle-free transactions, and it’s about time you invest in one.
3. Apply for a loan
Even before you need one, you should apply for a loan. This will let you cover your deliverables when an emergency happens, as well as maintain your commitment to your customers and provide what they need.
Some people see getting a loan as a sign of business failure when, in fact, it means you’re doing the right thing for your business. Taking this step will help you keep up with the demands of your business and save it from other risks such as losing clients and providing late payments to vendors.
Radiowealth Finance Corporation can offer you the best loan deals for your business, with guaranteed low-interest rates.
4. Ask for deposits
Waiting for payments can slow down your business. Deposits guarantee that your customers will claim their orders or keep you from incurring losses if they fail to do so.
Asking for deposits is one of the standard operating procedures in a business, and it isn’t bad to demand for them. You can ask for half or at least a third of the total price before you start on crafting your product or providing your service.
5. Try extending payables
If you have vendors or suppliers that have developed a strong relationship with your business, then perhaps you can ask them to delay your payments if you have a more urgent deadline.
Extending payables are often possible with big suppliers and vendors, as they are usually the ones with higher capital. Don’t be shy in discussing pricing and payment terms. You can choose to forgo discounts in exchange for longer payment terms.
Trust is essential to keep doing this so make sure you pay on time.
Being your own boss comes with a huge responsibility, and we do understand that, sometimes, cash flow can be a little tight. We also know that, in order to grow, you need to increase inventory or beef up your capital. RFC supports the Filipino entrepreneur by offering flexible business loans.
We help your business dreams take flight.