Cash flow management

Cash Flow Management
Made Simple

Extend Improve
Payment Cash
Terms Collection

Analyse Forecast
Expenditure Regularly

Most small businesses only just manage to keep their heads
above the water.

They struggle to pay employees and debtors.

If they followed a few simple steps they could:

and spend money on revenue generating projects.

Top tips to keep your cash flow positive

Keep your suppliers to a
minimum, it is better to
have a few key
suppliers.

Use your increased
spending power to
leverage better
payment terms.

Set up a robust
payment authorization
process.

Pay suppliers on time,
but not earlier than
necessary.

If possible pay your
suppliers after you have
been paid by your
customers.

Credit check all customers before doing business with them

Offer a discount for early payment

Consider a factoring company to guarantee fast payment

Make sure that your payment terms and payment due date
are on every invoice you issue.

Run a report on all outstanding debts on a weekly basis
and pursue all outstanding debt.

Get senior management involved in cash collection
process with long-term debtors.

Provide your customers with as many payment options as
possible.

Consider ending your business relationship with customers
with a bad payment history.

Small Businesses should forecast
their cash flow at least on a weekly
basis.

When preparing a cash flow
forecast you must remember cash
and profit are not the same thing.

You could make a profit, but still
lose money.

Your cash flow forecast should
contain an estimate of when you
think will be receive money into
your business and when you will
have to pay out.

Each week or month you should
review the forecast against your
bank statement.

This will help you pick up on any
variances or discrepancies and will
improve your forecast in the future.

Contact Us for help with
Managing Cash Flow

www.arinobe.com cashflow@arinobe.com

+44203 286 7829 +447825 002 908

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