How to Maximize Your Cash Flow
Cash flow got you down? Most people would love to have a bit more cash each month, especially when it’s time to pay your bills. There are actually a few simple tips you can use today to start maximizing your cash flow.
#1 Automate Your Monthly Payments
One of the biggest tips to maximizing your cash flow is to pay your bills at the last possible moment. Pay them the day they’re due, before you incur penalties. This helps you hold onto your cash a bit longer. However, if you pay your bills manually then it can mean that you unintentionally make a late payment. This isn’t good for your credit, interest rates, or bank account because you’ll probably incur fees. Automating your payments prevents late payments. Most banks and payment systems make automatic payments quick and easy. Simply set them up and relax.
#2 Negotiate Fees and Payments
When you’re doing business with vendors and contractors don’t hesitate to ask for discounts and to negotiate fees. For example, a virtual assistant may be willing to give you a nice discount if you pay them twice a month and agree to utilize their services consistently each month. They get the benefit of ongoing work, which helps their cash flow, and you receive a discount.
#3 Create Your Own Cash Flow Incentives
Can you integrate a membership program into your business? Can you discount for ongoing work? If you’re a service provider then it can be incredibly helpful to your cash flow if you can get guaranteed ongoing work. Consider creating a membership or discount program for consistent work.
#4 Invoice Promptly and Invoice Often
Many service providers leave money on the table when they don’t invoice right away. In fact, if you can collect a deposit for your service and get paid upfront then you’ll boost your cash flow. Consider automating your invoicing system so invoices are delivered as soon as the product or service is requested. And make your payment terms “Due upon receipt.