How to Increase Cash Flow


Experiencing an increase in cash flow is a phenomenon many business managers want. Regardless of how much money a business is spending, increasing the amount of income is beneficial to paying bills and getting on top of short- and long-term financial goals.

Collect on invoices that are past due. If you have customers that owe money for a longer period of time than they really should have, tighten the belt on those customers. Dedicate effort in your accounts receivables to decreasing the number of unpaid invoices. Take these customers to court if you have to in order to increase your cash flow.

Sell more products or services. Your organization can increase its cash flow somewhat easily by bringing in more sales. This can be done by hiring additional sales people or increasing your target market size.

Invest the money you have that's lying around. Cash flow can be fairly quickly generated by putting stagnant money to work for you. If you aren't investing money that is just sitting in an account collecting dust, you aren't using your money to its full potential.

Take longer to pay your bills. You can perform an accounting trick to make it look as though you have more cash flow than you actually do. If you avoid paying your bills until the absolute deadline, you can have extra cash on hand instantly.

Collect your money up front. Change your policy on sales to collect money from sales at the outset, so you don't have to offer credit to a company and you don't have to wait for the money to come in. Collecting the money up front might cost you some customers, but it automatically increases your cash flow.

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