The Toa of Business Cash: Growth-minded Practices that Make a Difference

With all of the recent talk about how tough it is to get business funding, sometimes we forget that it’s not impossible. Small businesses are finding alternative ways to get the start-up or growth capital they need to gain some momentum. And it’s what you do after you get financing that determines the direction of your business. This fact is not lost on PowerHomeBiz. They offer some key advice on making your business cash go farther.

Collect Your Payments Promptly

That means streamlining your ordering process to include all forms of payment: credit and debit cards, e-mail and fax orders, e-checks, and established third-party processors such as PayPal. Send out invoices timely and apply penalties to late accounts.

Deposit Your Payments Promptly

Checks should be deposited same day, without exception. And become an expert in your banks small business cash processes. You should know exactly how long the lag time is between a deposit and available funds.

Make Accounts Receivable Rigid

This means profiling potential customers for credit and payment history, past references, and their reputation with financial rating services (think Dun & Bradstreet). Offer cash discounts and follow-up late invoices with phone calls and e-mail letters.

Don’t Pay Too Early

This is the opposite of your collections policy. Don’t pay your bills until the latest possible moment in order to keep operating cash in your account where it will do you some good. Using business credit cards for purchases typically sets payments on a 45-day schedule.

PowerHomeBiz goes into much more detail, but the golden thread is the same. Sound business cash management practices are solid ways to increase the fiscal capabilities of your small business.