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How to Boost your Cashflow

Boosting business cash flow isn’t about “making more profit” — it’s about accelerating inflows, slowing outflows, and reducing cash trapped in operations.

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1. Accelerate Cash In​

Invoice Faster

  • Invoice immediately upon delivery (not end of month)

  • Shorten payment terms

  • Offer 1-2% early payment discount

  • Improve Collections

    • Automate Reminders (Day 3, 10, 20)

    • Call large overdue accounts personally

    • Request deposits (30-50%) upfront

  • Tighten Credit Policy

    • Run Credit Checks for New Clients

    • Set Credit Limits

    • Stop work on accounts >45 days overdue

  • Shift Pricing Model

    • Move from one-time sales to subscription model

    • Annual pre-payment with discount

    • Retainers instead of project billing

Recurring Revenue Dramatically Improves Cash Predictability

 

2. Delay or Optimise Cash Out

  • Negotiate Payment Terms

    • Ask Suppliers for Net 45 or Net 60

    • Align Payment Terms with your receivables cycle

    • Renegotiate long-term vendor contracts

  • Review Fixed Costs

    • Cancel Unused SOftware

    • Renegotiate Leases

    • Outsource non-core functions if cheaper

  • Lease vs Buy

    • Preserve cash by leasing instead of large upfront CapEx

 

3. Unlock Cash Trapped in the Business

This is where many businesses miss easy wins.

  • Inventory

    • Reduce slow-moving stock

    • Improve demand forecasting

    • Use just-in -time where possible

  • Work-in-Progress (WIP)

    • Shorten project cycles

    • Break projects into milestone billing

  • Accounts Receivable

    • Sell invoices (factoring) if needed

    • Implement stricter follow-up

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Most businesses can free up 10–25% cash in 60 days just by tightening operations.

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