Positive cash flow. It’s a key ingredient baked into almost every successful business. Good management is critical to keep the cash flowing and your operation running smoothly. With fifteen years of financial expertise and more than $8 billion in managed transactions, the experts at ExpoCredit know about handling money, and propose simple strategies to help you maximize the cash flow at your business.
Map out a “worse case” plan: Slight shifts in the economy can generate major shortfalls for your business, so imagine encountering a disaster. When a crisis hit, it can be difficult to make quick decisions. Mapping out a plan now, while things are stable, can provide a reliable roadmap. When tough times hit, you’ll know what to do.
Start setting aside money now for that “worse case”: When times are good, earmark a percentage of revenues for building a rainy-day fund. No matter how sunny it looks today, clouds could arrive tomorrow. Be prepared. You’ll have a cushion when you need it, and an edge over competitors who failed to set aside emergency capital.
Apply surgical precision to cost cutting: You’re already asking, “how can I save with my slim margins?” Even minor cuts can build into substantial savings over time. Pull out a scalpel, and apply a carving mindset to every line item in your budget, from office supplies (print on both sides of the paper) and postage (mail early and avoid overnight delivery fees), to phone bills (SKYPE more often) and subscriptions to trade publications (read them online free).
Outsource: Working with independent contractors offers several advantages. The contracted employers generally don’t add to your fixed overheads (they don’t require desk space), and you do not have to pay tax withholdings or provide benefits. And, outsourcing provides the flexibility to address variations in demand: staffing up during busy periods and cutting back during things slow down.
Don’t pay bills too fast. Some business owners tend to pay bills in advance of their due day. It can feel good to do that, however you may be losing other opportunities to have that cash working for you. A few days more interest earned? It all adds up
Do pay your invoices early: Many vendors offer discounts for early payment. Even if it’s two percent off the invoice, that can amount to substantial savings over time. ExpoCredit can show you how to turn your Accounts Receivable into a strategic tool for accessing the cash hiding in your customer’s unpaid invoices. You can then use that cash to pay your vendors early and gain those vendor discounts.
Capture the money owed to you: If there’s a stack of unpaid customer invoices on your desk, that’s a stack of your money—and you could be using to grow your business. ExpoCredit Invoice Factoring lets you release that money into your cash flow stream without having to wait for the customer’s check in the mail. You’ll have cash infusion to solve any money problems encountered by your business in a short period of time.
Establish a funding line before you need it: This should be part of every contingency plan for every business. Begin preparing now for future funding. Compare offerings and identify the best sources and solutions for your situation. ExpoCredit offers a portfolio of options, customized to fit the needs of our clients, at competitive rates, and backed by solid resources and experience. Invoice factoring with ExpoCredit is a simple, cost effective way to maintain a “line of credit” that grows with your business. It’s ready funding that requires no financial covenants, asset appraisals, or personal guarantees.
Factoring is not a loan, so nothing is carried on the books, helping to improve your credit rating. And applying is fast and simple, with everything you need downloadable online.
To learn more, or to establish your relationship with ExpoCredit now, go to www.expocredit.com.