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How to Solve Your Small Business Cashflow Problem

Posted 27 Aug 15

One of the major challenges your small business will face at some point is balancing growth and profitability.

In cases where businesses are funded from personal pocket, a company’s development can be a huge financial strain and you might be facing a cash flow crisis.

However, there are ways which can help you get through during tough times and in this article we will focus on some of them.

1. Postpone your future projects

It might be painful to put away a project you feel passionate about. However, in times of financial crisis it can be much more beneficial to postpone creating a range of new products or services until your situation becomes more stable.

Unless the return on investment is immediate, you should avoid taking risks during this time.

2. Get a loan

Although there is stigma attached to business loans, there are times when your business can benefit from one. If you have a clear plan of the direction your company is going in; finding the right loaner might be a great way of saving your business.

At Tawanda Accountants we employ expert advisers who will be able to find the best investor for your business. We do not require a business plan from our clients and the application process is short and simple. We work in connection with an innovative loan provider who connects our clients to financier at competitive rates with no early repayment fees.

If you would like to find out more about our offer, contact our team and we will present you with offers that best suit your business’ requirements.

3. Invoice Up

If you invoice your clients, you might want to consider sending them the bills for your services earlier than usually scheduled. Make sure you inform your clients about the change. Some of the companies allow their clients to pay for the products and services they buy at a later date.

If your company is owned money, it can be worth calling your trade debtors to collect the payments.

4. Lower Expenses

Although the last point might seem obvious, a lot of company owners aren’t aware of the exact expenses of their business. Go through your company’s resources and decide which ones are not essential for your company’s productivity.

Cut back on all the expenses you can without affecting the performance of your business. If you have any excess inventory, the problem might lie in bad planning. Make sure you have enough inventory to cover the regular amount of clients your company handles on the daily basis, but not much more.

Dealing with a cashflow crisis can be an extremely stressful period for your business and the best way to run the company is to prevent it from happening.

The best and easiest way to do so is by hiring a professional accountant who can help you plan ahead any future costs, keep an eye on your company’s balance and make sure you never make a purchase that can affect your business in a negative way.

If you would like to learn more about the services we offer, contact us at Tawanda Accountants, and we will plan the best strategy for your business.