Strong cash flow is crucial for a small business’ survival. Need help managing the money coming in and out of your company? Follow these tips:
1. Forecast your cash flow
Do your best to predict ups and downs in advance. Start by making a list of payments you’ll need to make over the next year. Then, create a list of money that should be coming in. Finally, subtract credits from debits to come up with a general idea of how much cash you’ll have at a given time.
2. Lower your expenses
Limit business expenses for improved cash flow. Of course, this is often easier said than done. Look through your company’s budget and see what can be slashed. You might even be able to bundle certain services — like internet and phone — to reduce bills and save up much-needed cash.
3. Use a factor
If your cash flow is suffering due to late-paying clients, you might want to hire a factoring service like RMP Capital. We can advance a majority of your invoices, helping you get your hard-earned money now — not 60 days later. How is a factor different from a bank? Rather than focusing on your creditworthiness, we look at that of your clients.
We work with businesses in a variety of industries, from trucking to public works contracting. Think factoring might be the answer to your company’s cash flow crisis? Then give us a call today at 631.738.0047. You can also get in touch with RMP Capital online.