4. Pay attention to accounts payables. This is just as important to your cash flow as accounts receivable. First, you should negotiate with vendors for payment in 30 days or more and pay towards the end of the term.
The next thing to consider is your inventory. Are you overstocked? Just cutting down on your inventory can free up a tremendous amount of capital.
5. Consolidate your debt. By consolidating your debt you may be able to secure better interest rates. You will also simplify your debt payments.
Your debt includes: business loans, car loans, equipment loans, credit cards and any other business lines of credit.
6. Lease your equipment. http://www.leasingideas.com/ Equipment leasing is another popular method of increasing your cash flow. Here you have two options: Either you can sell the equipment you currently own for a quick injection of cash in favor of leasing it, or you can try a lease-back option.
With lease-back, you can capitalize on the value of your equipment, yet still keep the equipment for use in your business. You just need to find a leasing firm willing to buy your assets and then lease them back to you.
With the first option, your business will benefit from a quick injection of cash. The only downside is that when the lease term comes to an end, you will not own any equipment.
With the second option, you get to keep all of your original equipment, but you may pay a high premium on the lease. You also risk loosing the equipment if you are unable to keep up with the payments.
