18 Ways to Improve Cash Flow

Listed below are 18 ways to find cash in your business.  Your answer will not be one of these, it will probably be some combination of all of these.

  1. Inject your own cash as equity
  2. Sell stock to inject other people’s money as equity
  3. Increase Debt
  4. Change terms on debt
  5. Convert short term debt to long term debt
  6. Collect your receivables faster
  7. Change your customer mix and eliminate slow payers
  8. Extend your payables
  9. Reduce your sales/slow your growth
  10. Change your payroll policy to delay employee’s paychecks
  11. Lower inventory
  12. Reduce your overhead
  13. Take deposits
  14. Increase prices
  15. Change terms of your invoices
  16. Factor
  17. Manage the business to a budget that includes cash retention
  18. Fund depreciation

Having said this, the only way to really improve your cash position over the long haul is to earn a profit and methodically retain some of the cash generated from that profit.  If you do not have a plan to do so and the discipline to implement that plan the fact is that it won’t happen.