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The Ultimate Guide to Boosting your Cashflow: Part Two

Ten more tips to boost your cashflow and get more money into your business.

Cashflow is at the heart of every company, as every business owner will know. Following on the popularity of our Ultimate Cashflow Guide, we’re bringing you part two, filled with ten more tips for getting more cash into your business - sooner.

A healthy cashflow is more important now than ever before. With the rising costs of living, a rise in National Insurance Tax, and inflation at an all time high, businesses are feeling the impact. Prioritising a healthy cashflow will help you. 

1. Make friends with accounts 

It’s important to ensure that you’re sending your invoices to the right person at all times. If you make friends with the accounts team or employee, you’ll always be in the know and have up to date information and contact details. 

2. Buy in bulk 

If possible, buy anything you need for your business in bulk. Often buying in bulk allows you to save money in comparison to buying smaller amounts - and if it doesn’t, ask for a discount. This may seem like a big dent to your cashflow at first, but it will help out in the long run. 

3. Look for offers and discounts 

Do you use a service where you pay monthly? Look for any offers, such as paying upfront for a year with a discount. A good example of this is accountancy software - often providers offer twelve months for the price of ten if you pay for one year at a time. Again, this can seem like a big outgoing, but if you’re in the position to spend that chunk of money, the cashflow benefits are long lasting. 

4. Review your outgoings regularly 

How often do you check your regular outgoings from your business bank account? If the answer is not that often… you need to change that. We often take out subscriptions and free trials and then completely forget about them. By checking your outgoings regularly you’ll find it easier to spot these and cancel anything you’re no longer using. It might be a small amount of money, but it still helps. 

5. Get lines of credit sorted beforehand 

If you’re looking to apply for loans at some point in the future, it’s best to start looking earlier rather than later. You don’t want to be in a rush to find funding, as although it can be very quick to secure, it’s not guaranteed. Invoice finance can be quicker to secure than say, a bank loan. 

6. Set up a credit control policy 

If you’re a young business, or someone who rarely gets paid late, you may not have set up a credit control policy within your business yet. However, they’re really important, and can be incredibly useful. A credit control policy includes the strategies employed by a business to accelerate sales of products or services through the extension of credit to potential customers or clients. It might seem like an unnecessary task, but trust us, it will come in handy. 

7. Consider asking for a deposit on your work

If you don’t already, why not consider requesting a deposit upfront for new projects? Of course, this isn’t always possible and is dependent on your business, but if it is possible, try it out. It doesn’t necessarily have to be a large sum - even 20% would boost your cashflow, allowing you to take on more work confidently. 

8. Lease equipment instead of buying it 

Are you looking to buy a new piece of equipment? Why not rent it instead? If it’s something you only need short-term, even better. There are lots of places to rent items, especially tools. If it’s not possible to rent something, you could consider reselling your old model and putting those funds towards buying new equipment. 

9. Sell off assets 

If things get really tricky, you could always consider selling off less important assets that belong to the business, such as equipment or property. This is of course a very difficult decision to make, and not a decision to take lightly. 

10. Talk to your peers 

One of the things that business owners can often forget is that they’re not alone. There are a huge number of entrepreneurs and fellow business owners across the UK that you can connect with. Look for Chambers of Commerce and business support groups in your area, or check LinkedIn and online forums for industry specific support groups. Talking through cashflow issues with someone else who understands is hugely valuable - even if you don’t walk away from the conversation with solutions, we can guarantee you’ll feel a whole less stressed. 

Take away the stress of cashflow struggles with itsettled. Trust our credit management software to deliver credit control that will boost your cashflow and save you time.

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