In today’s world, your company’s cash flow says a lot about the future of your business. Many financial analysts consider your cash flow condition as the top indicator of the future of your business. A well-managed cash flow typically signifies that the rest of the business is healthy.
Think of your cash flow as the heart of your business. As long as it is well-managed and taken care of, your business will continue to thrive in every aspect. A mismanaged cash flow, or weak heart, can affect the entire business until your company suffers serious setbacks.
Just throwing money at your cash flow problems is a temporary solution. While heart disease can be treated with medication, it takes an entire change in your lifestyle to truly repair your heart, or cash flow, for the future. Treating your cash flow problems requires a holistic approach that reaches every limb of your business.
Move Your Goods
The faster you can get your goods into the hands of a buyer, the less likely you are to experience cash flow problems. Companies that sit with inventory in warehouses may spend cash they simply don’t have on inventory that isn’t yet purchased. Moving your goods faster requires several important things:
- Stronger sales team
- Seamless fulfillment process
- Wise transportation decisions
From selling your goods, to fulfilling to the orders to getting them to your customers, every step is important to keeping your company thriving.
Move Your Funds
Although a best case scenario is that your products or services fly off the shelves and replenish your cash flow on their own, you may have to turn to additional options to supplementing your liquid assets.
- Offer term discounts to customers
- Require payment with credit card or cash
- Charge late fees
- Collect on delivery (rather than a traditional lengthy term agreement)
- Inventory financing
Realistically, managing your cash flow is a matter of predicting your growth, expanding your inventory and always knowing your options.
Learn More About Factoring
It’s rare for companies to perfectly predict growth and changes in such a way that there is never a cash flow problem. As one of the best factoring companies, we offer options that give you access to cash fast without additional debts. Visit our rate form to learn more about Universal Funding.