Tips on How To Boost Your Company’s Cash Flow So You Can Thrive Through These Times And Beyond

As some states start to re-open after being in a COVID-19 lockdown, others are still closed, leaving many businesses unsure how to survive. Strong cash flow is the key, and even businesses that relied heavily on foot traffic from customers are finding ways to adapt so they can recover and come through the pandemic successfully.

Maintaining Cash Flow

Cash flow depends on the number of sales as well as how quickly customers pay their invoices. Outside of point-of-sale businesses like the retail sector, payments from customers are typically staggered by anywhere from 30 to 90 days. A business could have sales through the roof, but if the invoices sent to customers have staggered schedules of 30 days or longer, gaps can appear in revenue and cash flow can come to a standstill. During the pandemic, we have seen customers holding off as long as possible to pay invoices, which can make it very difficult for businesses to thrive in the current pandemic. While some businesses rely on short-term loans to fill in gaps in capital, that option is becoming more difficult to access. Lenders are tightening their requirements even more during the pandemic. At the same time, businesses are hesitant to take on unnecessary debt and simply want to find a faster way to improve their cash flow. (Click Here To Learn More)