Being able to effectively manage your cash flow is key to the long term survival of your business. It will also allow you to maintain enough working capital to operate through quiet periods. Your cash flow impacts on your future spending decisions and the direction your business is likely to take. So keeping your finger on the pulse at all times can help ensure you are making the right decisions. Below are 10 strategies to help improve a company’s cash position. Not all of these strategies make sense for all businesses. However, some combination of these can be employed by any business.
In the long-term, free cash-flow, equity and debt finance are the best sources of working capital. However, these options may not be available for all businesses. In such cases, there are alternative cash-flow management strategies that small businesses can use to ease the strain on their working capital. Here are some of those: