Cash flow is critical for any business, small, mid-market and large.
Improving your Total Days To Cash is critical to fund your future growth.
Here are ten ways that you can accelerate cash flow and improve your Total Days To Cash in your business:
- Invoice as quickly as possible.
- Offer your customers discounts for prompt payment.
- Accept various forms of payment including credit cards and electronic payments. Most of Europe doesn’t even use cheques any more.
- Take a deposit up front.
- Issue invoices during a service period instead of waiting until completion.
- Separate your pricing into tiers or options so that you have multiple price points to attract customers at different levels.
- Give your customers control and choices in how much they can spend with you.
- Finance the purchase of long-term assets with long-term loans.
- Minimize down payments on purchases through leasing or 100% financing.
- Ensure your pricing generates healthy profits. Profits, and collection of those profits, turns into cash.
Copyright 2011. All Rights Reserved. Phil Symchych
You may share this information with proper attribution including: “Reprinted with permission of Phil Symchych. http://www.smewealthbuilder.com/”