manage cash flow

4 Ways to Manage Cash Flow and Grow a Business

Cash flow is a major concern, in any business undertaking. A successful business is measured by among other factors, how cash flow is managed. This entails the flow of cash into and out of business. Therefore there’s every need to encourage those who owe you money to pay up soonest possible, whereas you could hold onto any cash you get at least until the agreed time to ensure the efficient running of your business. Encouraging clients to pay in cash and easing the way you transact with them will also serve to increase the flow of cash into your business.

Four ways to manage cash flow

1. Managing Payables

Suppliers are a crucial part of your business; they provide the items with which you use to transact and more so offer credit to you. Negotiate good credit terms and be sure to adhere to them, this will enhance your relationship with suppliers making carrying out business with them quite efficient. However, here are some key points to enhance payables management;

• Take advantage of the credit terms. Often the credit terms run for 30 days within which you are to pay