Cash is Queen. It doesn’t matter whether you are mompreneur that has five plates spinning or a mompreneur that is just starting out. Without cash, you are going to struggle in your fight for success. But just about having cash promised to you isn’t enough, you need to find ways to speed up your cash flow too. Having funds readily available is one of the main reasons so many small businesses flee to their local banking branch and ask for a loan extension or dip into their personal savings to keep them afloat while they wait for the cash assured to them to hit their accounts.
If you are at that point in your career then stop! Stop right this second. Take a deep breath. And another one. And then sit down for a second. The reason being, you don’t need to do anything that drastic just yet because there are other ways you can speed up your cash flow that is well worth taking a look at.
Get Your Invoice Out Of The Door
Ah, the dreaded invoice debacle. Yup. The reason we have brought it up, though, is because it is still the number one way to get your cash flowing like the Niagra Falls without any extra cost to you and, let’s be honest, cash flow is an essential for a smooth running business. Unfortunately, though, most small-businesses tend to have cash flow problems because they continue to incur expenses before the money from an invoice is paid. The solution is relatively simple, though. You need to start aligning your invoice cash collection with the outgoing s of your expenses. For example, you could start using a system that sends out invoices fortnightly instead of monthly. Whatever it takes to speed up the process.
Get Involved In Invoice Factoring
A more surefire way to speed up your cash flow is to start using a little system known as invoice factoring, especially at times where you are starting to feel the pinch and need money in hand. If you want a really detailed understanding of how this process works, and how it can help you, then definitely visit https://www.interstatecapital.com. But to summarize it for you, invoice factoring is where you sell your invoices to a factoring company in exchange for an immediate advance on the value of said invoices. This allows you to have the money in your hand almost immediately, meaning you can cover those pressing bills or continue with your growth plans as projected.
Tweak The Terms Of Payment
There are ways to incentivize your clients and customers to pay you in a timely manner, which could be something that is hugely beneficial to your business operations. One of the best ways to do this is to change the payment terms on your invoices so that you get paid more quickly. It could be that you offer 2.5% off the invoice total if the invoice is paid with twelve days. This is a common thing in the world of business and is usually written as ‘NET’ and then a figure. Of course, if this doesn’t work, then there are other payment terms you could include, such as those found at https://www.freshbooks.com you could start requesting half of the total invoice is paid upfront. This will make them more committed to the project at hand and will see you have the freedom to complete the task at a better level of quality.