Increasing Cash Flow to Best Utilize Business Cash Advance Loans

Many of those who contact US Business Finance Corp about business cash advance loans ask for tips on how to increase cash flow with business cash advances. Entrepreneur Magazine offers several suggestions, tried and true practices that help lead merchants, companies, and small businesses away from money struggles. It is imperative that companies correctly manage finances and some may need to institute a few changes or policies – in addition to applying for business cash advance loans.

Truthfully speaking, the idea of pouring more money or larger cash advances into existing business systems that do not work usually portends more financial troubles. Therefore, it is important for business cash advance companies as well as companies applying for business cash advance loans to be aware of leaks in a company’s financial system and to mend them.

Here are the suggestions enumerated by Entrepreneur Magazine that could help small business owners to better manage cash flow:

1. Stay on top of Accounts Receivable. Review the accounts receivables every week so that you know which customer payments are past due.
2. If a vendor offers a discount for early payment of a bill, then pay early. Otherwise, keep money in the bank and pay bills only when they are due.
3. Adjust payment schedules with vendors so that the coffers are fuller during the time of the month when the business usually runs short of cash. For example, if the company runs short of cash every month on the 15th, arrange for clients to be paid up by the fifth of the month. Another option may be to arrange with vendors to pay bills in, let’s say, 30 days instead of 15 days.
4. Before offering deferred payment, investigate a client’s credit history. Always ask for references and do not fail to check the references. Any company that regularly extends credit could also consider purchasing a subscription to a service that is fully equipped to check references.
5. If necessary, ask clients/customers to pay cash. Another option is to extend only small amounts of credit to be sure the clients/customers are paying before six attending credit for larger amounts.
6. Justify in writing the purpose of expenditures. Enforce a policy of planned expenditures with each request accompanied by an explanation that justifies the expense.
7. Review existing reoccurring expenses.
8. Retailers must focus on the inventory with the best profit margins and highest demand. Equally as important is to focus on products with a low profit margin that sell slowly. Eliminate items that leave money sitting on the store shelves.

US Business Finance Corp offers a series of programs to help sole proprietors, entrepreneurs, and small companies to quickly gain access to operating capital that will satisfy current business needs. Call 1-877-233-5777 for more information to help jump start your business with cash advance.

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Filed under: Alternative Capital, Business Cash Advance