If cash is king, then your business needs more flowing in than out of the business. Keeping cash after the sale & expenses is all about that mighty goal of profits. Check out this page with resources on cash & credit: access to cash.
Accelerate your access to cash:
1. Sell more and collect payment at the sale.
In a tight economy you can sell more by adding a service contract. You can sell more by bundling products into a package with a slight discount. The client gets a discount, you get a bigger sale & still keep solid profits.
2. Collect more up front, collect progress payments & get receivables.
Every SCORE mentor will say collect the funds you are owed & do it quickly. Whenever possible, collect a deposit up front. In contract arrangements, set up the project for progress payments as key milestones. For everyone, put a collections policy in place and follow it to collect what you are owed. Ask SCORE how to set up a collections policy.
3. Save more by cutting expenses and holding on to your cash.
Look at cutting expenses by 10 percent. It is amazing what you can find to trim in costs, when you really look. Spend what you need to market and operate the company–but don’t stock unnecesary items, print large quantities of branding materials or commit to long-term contracts. Keep your cash in your business as fuel thru the recession.
4. Borrow funds for bridge capital until customer payment is received.
A line of credit is good way to fund bridge capital. If you have a good credit score and track record in business–your chances for a line of credit go up dramatically. Even in tighter credit markets, a solid business can get a line of credit. If your credit score is not as strong, explore an SBA-guaranteed loan. Community banks and the bank you do business with day-to-day are good places to start. SBA loans may be an option.