The final quarter of the year is upon us and it’s time to make sure your business stays afloat. This is a crucial time of year for small businesses. You will doubtless be looking to end the year strong and start 2023 off on the right foot. In this post, we will discuss some tips for maintaining a healthy cash flow in the fourth quarter.
Top Tips for Maintaining a Healthy Cash Flow
One of the most important things you can do to maintain a healthy cash flow is to keep tabs on your spending. This is especially important in the fourth quarter when expenses tend to be higher. Make sure you have a budget and stick to it. Review your expenses regularly and make adjustments as needed.
Proactive Invoicing and Credit Control.
Another way to keep your cash flow healthy is by staying on top of invoicing. This means sending out accurate invoices as soon as the work is completed. Don’t wait until the end of the month or quarter to send out invoices, have a system to chase regularly for outstanding payments and send statements. You could consider offering discounts for early payment and this can help encourage customers to pay their invoices sooner, but just be sure you are aware of the impact on your bottom line and ensure you are still making a profit after the discount is applied.
Staying organised is key to maintaining a healthy cash flow. This means keeping track of all your income and expenses. Create a system that works for you and make sure you are consistent with it. This will help you stay on top of your finances and make it easier to make informed decisions about your business.
Be Proactive in Searching for better prices on Inventory and Supplies.
Are you getting the best deals on supplies and inventory needed for your business? This is the time of year to check in with vendors to see if there are any deals or discounts that can be had. It never hurts to ask, and you may be surprised at what you can save.
A Healthy Cash Flow is the Lifeblood of Your Business
By following these tips, you can help ensure your business has a healthy cash flow in this fourth quarter. If you’re not taking care of your cash flow, you’re losing money. Cash flow is the lifeblood of any small business so make sure you are staying on top of it – this final quarter isn’t a time to rest on your haunches. You’ve worked hard all year, but this last quarter, you can’t afford to let up.
Invoice Finance Can Help
If you’re already struggling with cash flow, invoice finance can help. Invoice finance is a type of funding that allows businesses to access cash tied up in their unpaid invoices. It works by businesses selling their outstanding invoices to a lender at a discount. The lender then pays the business an advance of up to 90% of the value of the invoice, with the remaining balance (less the lender’s fee) paid when the customer pays the invoice in full.
Invoice Finance benefits include:
- Access to cash quickly.
- No need to wait 30, 60, 90 days or more for customers to pay.
- The ability to free up time spent chasing late payments.
- Improve your business cash flow and working capital.
- Easy to access with a straightforward and short application process.
- No lengthy tie-ins.
- Flexible, you choose which invoices you want to factor.
- No asset or collateral requirements.
Let’s dispel the myth straight away that Invoice Finance is the last choice for businesses looking to bridge a financial gap, it’s in fact one of the first choices for many. Invoice finance can be a vital tool to help businesses manage peaks and troughs in their cash flow, as it provides a steady stream of working capital.
If you’re looking for a way to bridge the gap between your customers paying their invoices and you receiving the payment contact us today.