12/09/2015
Become a Better Business Manager , Sound working capital management is essential for every business. Here are some tips to help ensure you're doing the job right.
1.Always bear in mind the desired balance between inflow and outflow of funds
2.Match significant cash outlays with similar cash inflow amounts
3.Whenever possible, reach agreements with suppliers to stagger major cash outlays
4.Obtain a reasonable line of credit based on the net value of the business
5.Maintain a good relationship with your banker; never hide information that could compromise the trust you have established
6.Pay particular attention to your inventory levels; despite the fact that a balanced inventory is often difficult to identify, avoid excess stock, which ties up cash flow
7.Collect amounts due from customers as quickly as possible, and do not hesitate to offer discounts for fast payment terms
8.Do not hesitate to ask for deposits from certain customers, or for certain types of contracts
9.Obtain better conditions, such as longer payment terms, from suppliers
10.Finance long-term assets with term financing equal to the life of the assets
11.Attempt to secure cash flow financing from public and para-public agencies and organizations, especially if you are a start-up bringing your product or service to market
