Cash flow is arguably the main driver that keeps any business going and the sooner it becomes predictable the more risk you can begin to take on, the more you can expand and in theory the more profitable you can become. Here lies one of the first benefits of being able to foresee your cash flow for a particular period, the ability to expand and improve.
For small businesses cash flow is particularly important and is likely to be the difference between a company thriving versus a company failing. SMEs will probably only have a few employees to start with and it is from early employees that the growth of the company will ultimately depend upon. If cash flow becomes strained, perhaps because of a late payment, you may not be able to pay these important employees on time. If you were in their position and weren’t getting paid when promised, you might find it stressful. As a business owner knowing you have the money to pay employees on time means you can rest easy and have one less thing to worry about. Finally the benefit of predictable cash flow are satisfied and productive employees.Improving your business relationships in benefit your business. Your partners likely work with many other companies. Who are they going to come to first with new exciting propositions? You! You who has the stable predictable cash flow and always pay on time; the reliable guys. The more opportunities presented to you the more you can expand, the more successful your business can become and hopefully the happier all those at your company will be.
Some ways to improve your cash flow to make it more predictable may include; staying on top of payment due dates, calling out those who aren’t paying you on time, pay others on time so they will hopefully return the favour and always agree payment terms so you can act if paid late.
We are building a rare win-win business: SMEs are able to instantly recover late invoices using our platform to access world-class collection agencies, late payers select instant payment plans and issue resolution and collection agencies gain a new revenue stream using simple integration.