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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