The rapid pandemic outbreak has led to a health crisis and substantial financial loss! No one expected that this year would cause a visible setback globally! Almost every business house and organization were witnessing a sharp economic downswing, with the massive financial casualty. During this time, it has become imperative to maintain a strong customer relationship. Additionally, it is also essential to manage your business cash-flow seamlessly.
Cash Flow Management Tips by Mike Giannulis
According to Mike Giannulis, here are a few business practices that will help you maintain constant and daily cash flow.
The invoices will make an immediate difference for businesses to manage their cash flow. And keeping this in mind, companies need to create and send invoices to their clients the moment the work gets delivered. This practice will reduce the time to get the payment and support in maintaining apt cash flow. Considering the present circumstance, it is a good practice to send e-invoice and minimize the paper trail.
Bring Down Overhead Expenses
One way how business can optimize cash flow is by reducing costs. You need to check the overhead costs and assess how you can bring down the expense. Can you reduce the subscription payments? Can you cut down on inventories? It will help to streamline the cash flow better.
You Have to Be Consumer Agnostic
COVID-19 has affected every layer of financial structure! And to manage this, it is necessary to have a robust customer base. You need to support the customers by providing discounts and several other offers to them. The pandemic outbreak has also encouraged several business owners to diversify their products and services, based on the market needs. Today, you can adjust to contactless delivery and advanced payment options to manage the cash flow.
Focus on Managing Inventories
It is necessary to know whether an inventory is essential or you can do without it. Currently, businesses need to have inventory checks to sell off the stocks that are not required. Even if you sell it at a discounted rate, you can make some money, which will add to the cash flow.
Try Alternative Lending Options By Mike Giannulis
Is your business experiencing a cash-flow crisis? If yes, then you need to think of various alternative lending choices, such as invoice discounting. It is a quick way to generate working capital in the short run and enables businesses to sell invoices at a reduced rate to attain instant cash flow. It also allows the company to expand and grow. Since it is a non-collateral financing solution, the process of invoice discounting enables businesses to build up funds that don’t affect their balance sheet. The collateral gets built on an agreement, and money that gets borrowed is a fraction of the current invoicing value. It implies that invoice discounting has a reduced risk for the ones who are using it.
Your business needs a steady cash flow to run, especially in times of a crisis. Else, there might be delays in office bill payments and employee salaries. It is necessary to follow the steps mentioned above and maintain the correct cash flow management.