Five quick ways to speed up cash flow

When you start a new business you are looking for return. Most business owners have set up shop so that they can make a living, so that means they need cash flow. And the sooner the better!

There are many things that can bring in cash flow, just some a slower than others. Once you are up and rolling you are ready to be rolling in the dough! Here are five ideas that are known to bring in cash flow, and usually pretty fast.

1. A great idea that can speed up cash flow is to accept credit cards. They are very convenient and they help customers by encouraging impulse buying. Credit cards are so easy and many people only carry plastic, so if they come in you need to be able to accommodate them. There is sometimes a charge for each transaction through your bank, or wherever you got your credit card processing, but they are minimal next to the extra profit you will see.
2. Make sure that you are following your budget and that your budget is serving you the best it can. If you are spending money on unnecessary things then you will never find yourself getting ahead. Make sure that you are staying on budget each month and that changes are made whenever needed. You will find that more money is coming in if your money is budgeted right, for example if you don't have enough budgeted for marketing then you won't get the results you need from a good marketing budget.
3. Something that may seem strange is to always pay your bills at the last second. That never said late, just right on the day they are due instead of before. This ensures that you don't run out of money because you paid all of your bills on the first week of the month and all the money isn't coming in that week. Break down your bills so that you will have the money to pay them. If you are trying to pay too early then you may find yourself in a bind later that month or even later that week.
4. Extending credit through your business to customers can be very profitable, but it has to be done right. Make sure that you have them fill out credit applications and that you do a credit check. If their report looks ok then go ahead and allow them the credit. But it is always a good idea to require some of the money up front. Have them pay a portion or a percentage and then allow them to put the rest on credit. Don't be afraid to say no to customers when it comes to credit. It is better for you to have a customer leave without buying anything then to have them leave with things on credit and you never get paid for them.
5. With the credit that you give out make sure that you are sending out invoices promptly. Make sure that they are being well informed on how much is due, when it is due, and how they can pay it. Customers that are late should be given extra notices and you should be contacting them in more than one way, if you let the account go over two months overdue then you are likely to never see the money. It is a great idea to offer rewards for on time or early payments and big penalties for late payments. This will give your customers a reason to pay you back.

Once the money is flowing all of these things will just seem like second nature. Don't forget that the customer is number one, you should always be striving to make them happy.