Cash Improvement Opportunities

Peter Bussey -

These are some pointers for looking after your business finances during the current economic climate – which we previously issued to clients during Covid

  • Ask for a partial or full payment up front
  • Invoice on completion – not at end of the month
  • Reduce terms to 7 days – not the usual 14 or 30
  • Offer 1-5% early payment discount
  • Hit Milestones during a contract – so further invoice can be issued
  • Request Progress Payments on longer projects/tasks
  • Get sign-off on completion or milestone – to avoid payment disputes
  • Systemise Billing process – Quickbooks can automate regular invoices
  • If payment overdue – add interest – and collect this
  • Factor the Invoice process – removes the risk at a small cost
  • Negotiate longer payment terms from Suppliers
  • Bulk buy at a discount
  • Reduce stock levels
  • Raise finance against assets – equipment or property
  • Review costs – look at cancelling subscriptions where possible
  • Reduce personal costs – so that lower drawings/salary/dividend can be taken

Get in touch
If you would like further information on these areas please contact one of the team.