When talking to young entrepreneurs, many have told us that cash flow is one of the biggest headaches in their businesses. Here are some tips to avoid a cash drought:
- Issue invoices promptly so you get your money as quickly as possible.
- Chase your debts – you can’t afford to be shy; if customers haven’t paid by the agreed date ask them politely why they haven’t and when they’re going to pay. Be prepared to be firm about your terms of business.
- Cashflow forecasting – predict the peaks and troughs in your cashflow so that you can plan expenditure better.
- Consider factoring or invoice discounting – these can give you 90% of the invoice value immediately.
- Asset re-finance or sale & leaseback are other useful aids to think about to help with cash flow.
- Some equipment assets could be used to release cash.
- If the banks won’t lend there are other sources of finance these days.
If you enter the HWYE competition at www.hwye.co.uk winners receive a year’s free business mentoring from a Partner at Haines Watts – they will be only too pleased to advise you on cash flow.
For further information visit www.hwca.com