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Cash Is King As Businesses Return To The ‘New Normal’

Cash Is King As Businesses Return To The ‘New Normal’

One response to “Cash Is King As Businesses Return To The ‘New Normal’”

  1. Things to consider to improve cashflow include:

    1. Don’t over-order! Storing a load of stock is just tying up your money unnecessarily. Most suppliers deliver on a daily basis, meaning you can use a ‘just-in-time’ order system and keep your cash as free as possible.
    2. Be prompt with your invoicing – the sooner you get money owed for sales or services, the better.
    3. Make sure your customers pay you on time – you need your money in your account, not theirs.
    4. Think about reviewing customer payment terms to incentivise early payment.
    5. Don’t forget to sense-check and benchmark all of these strategies against your cashflow forecast.
    6. Identify any cash gaps as early as you can, and seek advice on your options for addressing them.

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