Here is how to improve your cash flow: Increase sales: Obviously, sales growth (and associated collections) will solve all kinds of problems. This is more of a sales and marketing issue than a cash issue, per se, but should be a primary focus for management. Collect cash more rapidly: Focus resources on the rapid collection of those outstanding invoices that you have issued. As interest rates increase (which they inevitably will, and therefore the opportunity cost of delayed collections) this becomes an ever more pressing issue. Delay cash payments as long as possible (slower payment of accounts payable) without breaching integrity: I have seen certain large corporations raise this almost to the level of an art form (and if the company’s accounts payable is in the billions, it deserves that level of focus). I am not proposing that you violate any written or verbal agreements or understandings, but even if your company is flush with cash, paying according to the terms of your vendor agreements is completely acceptable. bizjournals/bizjournals/how-to/funding/2013/09/cash-is-king.html?page=all
Posted on: Fri, 08 Nov 2013 11:12:16 +0000
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