To make money in business, you must meet customer demands. You must also have sufficient case to pay employees, develop new products and keep the lights on. If your company has problems with cash flow, you may need to develop a strategy for raising revenue. Here are 10 ways you can access additional funds.
1. Assess Penalties
When vendors don’t pay invoices on time, you lose money. As such, for an influx of cash, provide incentives to those who pay on time and penalize those who don’t.
2. Send Invoices Quickly
By sending invoices to vendors quickly, you usually decrease the length of time it takes vendors to pay.
3. Analyze Operating Costs
All companies have operating costs. If your processes cost more than they should, however, you may burn through cash too quickly.
4. Locate New Customers
Rather than relying on your existing customers, raise cash by expanding your marketplace.
5. Rethink Inventory
Some of your products simply may not sell as quickly as others. Nonetheless, these items take up valuable space in your warehouse. By liquidating slow-moving inventory, you can focus on products that make you money.
6. Change Credit Cards
If you don’t have a credit card that gives you cash back, you may be losing valuable cash.
7. Apply for a Loan
Sometimes, the best way to increase cash flow is to apply for a business loan. If you have a solid credit history, you can get an influx of cash by working with a bank of credit union. Note, though, that the application process is apt to be extensive and long.
8. Obtain a Line of Credit
You may not need a loan to raise cash. Instead, you may get the cash you need by applying for a business line of credit. With one, you only pay interest on the funds you use. This can save your business money in the long run.
9. Choose When To Pay
If you pay vendors as soon as you receive their invoices, you may be spending cash too quickly. By delaying payment, you increase your working capital. Try to avoid paying invoices before incurring penalties, though.
10. Open a Savings Account
Money can be in short supply with startup business ventures. Still, if you can save a bit every month, you can tap into the funds when you most need them.
To maintain and grow your business, you need a healthy cash flow. While every business is different, with a bit of effort, you can likely increase your company’s cash on hand.