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What is cash flow?
The movement of money in and out of a company over time is known as cash flow and is a crucial indicator of any company’s financial health. We all know that cash flow management strategies are essential to the success of a business.
Improve cash flow with a trusted payment platform.
Did you know that over half of small and medium-sized businesses have outstanding payments from their customers? On top of that, these companies spend an average of 56 million hours each year chasing these late payments, which could be better spent on growing their business.
Blink provides a complete payment platform that can assist businesses in saving time, enhancing productivity, expanding their reach, and increasing cash flow.
The platform offers multiple payment options to make it easy to get paid, and enhanced reporting for full transparency.
Mastering cash flow management is key for financial stability and growth, consider and adopt a selection of cash flow management strategies that can help you learn how to improve cash flow to your business.
Let's make it happen!
1. Start with cash flow forecasting.
A detailed cash flow forecast will help you predict future cash inflows and outflows, understand your financial position, and make informed business decisions. Accomplish this forecast by putting together a weekly or monthly cash flow forecast. Once complete, you can compute the net cash balance, list your anticipated cash receipts, integrate your expected spending payments, and even estimate your cash flow growth.
2. Manage with proper oversight.
You can make sure that your company has enough cash on-hand to fulfil its obligations and grow over time by effectively managing your cash flow. Examining your past cash flow patterns can serve as a baseline for future cash flow projections.
Monitor your accounts receivable and pursue any overdue payments, which will avoid problems brought on by unpaid bills. Review your finances regularly and make informed decisions accordingly. Also, use accounting software and budgeting tools to ensure quick, easy and secure payments to improve cash flow.
3. Negotiate quick payment terms.
Time is money, so stop wasting time on inefficient and complicated invoicing as well as limited payment options. Your cash flow management strategies should include hassle-free invoicing and prompt payment options such as payment links. Automating the payments journey would also allow the business to capitalise on productivity.
Providing seamless payment options will help enhance customer satisfaction and raise the chances of timely payments. By incorporating payment links directly into invoices and emails, you can make it simple for clients to click through and send payments from the email or invoice. Lastly, offering discounts for early payments will eventually result in customers paying promptly.
4. Send invoices out.
You can budget your expenditures and allocate resources by using direct debits and repeat payment schedules to predict cash inflows and future cash flow growth. Being prompt in invoicing your customers for completed work will ensure you get paid quickly. In addition, you can use subscription-based models for long-term or regular clients. These approaches can help your customers have increased flexibility when making payments, allowing you to have a more predictable cash inflow.
5. Use electronic payments.
If you’re wondering how to improve cash flow then automating the payment collection procedure and sending payment reminders via email or text message a few days before payments are due is a good place to start. You can even use online payment processing solutions. They will speed up the payment process meaning you’ll have the money in your account much quicker and enable you to improve your cash flow management.
6. Use open banking.
Open banking allows you to provide customers with a link to pay directly from their bank accounts, which is a more practical method of making and receiving payments. Instant funding also enables businesses to receive revenue as soon as payment is made, providing faster access to funds. The benefit of open banking with Blink is that it is not only cost-effective but also reduces transactional merchant fees and therefore reduces expenses.
Final thoughts on how to improve cash flow.
The financial growth and success of your company depend on its cash flow. Don't let payment processing be a bottleneck in your business, and tailor it to your needs! Some of the many steps you can take to improve your cash flow are forecasting expected revenues, negotiating better payment terms, and increasing payment options. It is even possible to unite all these cash flow management strategies into one easy, revolutionary platform.
Want to know more about how your business can improve cash flow? Contact our team today and learn more about how Blink can help you transform the way you process payments.
