Cutting Costs

You can increase cash flow by cutting costs. Look out for expenses that can be cut off. If you have extra space, move to a smaller office or rent out the section that you do not need. Shift to services, processes and equipment that can save you money.

For instance, many SMEs managed to cut costs remarkably by making radical improvements, adopting the continuous improvement mindset (Kaizen mindset), and shifting to lean production systems.

An Incentive and Late Payment Program

Monitor your invoice system and ensure that all invoices are cleared on time. Late invoices can disrupt your financial system and cause poor cash flow.

One way to reduce the share of late payments is to offer small incentives to customers who pay on time. Develop a flexible pricing system. Discounts can be offered to customers who pay on or before time so that more and more customers pay you quickly.

In addition to this, you can levy a surcharge on customers who pay you late to prevent them from making late payments Do this with care and manage expectation of your clients properly to reduce customer dissatisfaction.