When it comes to cash flow, the positives and negatives aren’t rocket science. Bad cash flow means you may not get the best rate of interest available, while excellent cash flow opens more finance options so you can invest in growing your business. It really is as simple as that, but the question remains – how can you efficiently enhance your cash flow?
Well – you’re in luck. In this article, we’ve put together some of our top tips in answer to that very question. Have a peek at our favourites below to help level up your business, while avoiding last year’s stumbling blocks in the process:
Dig deep to find the best finance options
All good things come to those who dig. The best finance options for your business aren’t always going to be staring you in the face. Sometimes spending that extra time researching can make a world of difference and positively impact your cash flow in the long term. Full Metal Finance, if we do say so ourselves, would be a great option in regards to finding those stellar finance options. We think outside the box, are dedicated to building credit and prioritise open and transparent communication with all our clients.
Spread the costs
Financing purchases is a terrific way to spread out the costs of your equipment while saving money for investing and day-to-day operations. It’s important to remember that you’ll still be responsible for interest charges but, as long as they are not unnecessarily steep, it’s still the perfect option for most companies. In fact, you may even be able to write off charges such as interest within your business expenses. A win-win.
Start team training on Cash Flow Management
Learning and Development (L&D) can get a bad rap for being a bit of a waste of time. However, we’re firm believers that it can make a big difference to company expertise and could be just what you’re looking for when developing new ideas for enhancing cash flow. Teaching your staff using external sources or organising group meetings with an expert within your own organisation will supply you with extra resources for improving operations. Before you know it, new ways to improve your cash flow will start popping up like daisies.
Trust us – if you can get everybody singing from the same hymn sheet, you’ll be on the path to success.
Don’t let Outstanding Day Sales slip by
This one might sound obvious, but many construction companies don’t realise just how impactful being paid late can be. On average, it takes between 60-90 days to get paid, which can negatively hit your cash flow (especially when this is done en masse). The solution? Be stringent with your clients before starting a project and make it a company goal to lower the number of days to receive invoices to 45 or under. Adapting payment methods for different customers could also be extremely beneficial.
Great accountants are lifesavers
What would the world be like without accountants? A lot more chaotic – that’s for sure. Great accountants can be the difference between positive and negative cash flow for your business. A tip-top accountant will have the ability to keep things ordered and organised (an essential trait) while having a deep well of knowledge about the construction industry to tap into. With ongoing changes to legislation within the industry, this could be crucial. A stellar accountant is an essential cog in a well-oiled machine, optimising and streamlining your cash flow.
Managing your cash flow effectively isn’t just useful, it’s potentially transformative. If you’re searching for help sourcing the best finance option for you, it’s time to get in touch with Full Metal Finance – we’re only a phone call away.