Cash Flow and
your Business
Cash flow is the single most important factor in determining whether a business succeeds or fails. Getting money in faster, keeping cash in the business for longer, earning better interest and lowering the cost of banking are some of the many ways that small and medium businesses can get in control of their cash flow and stay ahead of the game. Westpac offers ten tips for improving small and medium business cash flow and stay ahead of the game.
Westpac
offers ten tips for improving small and medium business cash flow:
1.
Make
cash flow your top priority – Of all the reasons
businesses fail, insufficient cash flow is one of the most common.
2.
Revamp
your receivables strategy - Make sure you get paid on time by sending out
invoices fast, making payment terms clear, offering incentives for early
payment and penalties for late payment, providing a variety of payment options
and quickly arranging payment schedules for customers in difficulty.
3.
Understand
your costs and control them - Look carefully at business costs and understand
the likely impacts of cost cutting.
4.
Consider
consolidating your banking in one place and negotiating for a good deal. For
example Westpac offers a saving of up to $800 for business owners when they
have an eligible Business Transaction Account, with any two of the following:
an eligible EFTPOS Facility; an eligible Business Credit Card; or an eligible
Savings Account.
5.
Get
the right type of loan for the right type of purpose – for example a credit
card for paying taxis, a revolving overdraft facility to cushion cash flow and
a business loan for purchasing higher value assets.
6.
Keep
communicating your business’s point of difference – now could well be the time
to spend on marketing so you reduce the risk of losing business and seize any
new opportunities.
7.
Delight
your profitable customers by treating them to exceptional customer service.
8.
Get
as much advice as you can from experts such as your banker, lawyer, financial
planner and accountant.
9.
Work
smarter, not harder. Take stock of your business software, systems and
processes to make sure you’re making the most of them.
10.
Review
your business insurance. Make sure you’re protected from unexpected events that
can prevent you from maintaining cash flow.
Tony Davenport, newly appointed Bank Manager of the Blackwood
branch of Westpac, is calling on small and medium business owners in the Blackwood area
to draw on Westpac’s expertise to help them power up their businesses.
“We
want to help our small and medium business customers improve their cash flow
management so their businesses are more robust,” said Tony
“For more information about the business support services we provide, please call me on 0429 153 319 to discuss how we can help you,” said Tony.
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