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Consider all the upfront costs associated with running your business. It’s important to get a good understanding of your business and its financial needs early on.

Managing finances and ensuring the profitability of your company are usually the top priorities you face as a business owner. Sometimes it can prove to be a real challenge when you’re balancing all the aspects of your business.

Here are 5 simple tips to help improve your company’s cash flow:

1. Look into the future.Consider all the upfront costs associated with running your business. It’s important to get a good understanding of your business and its financial needs early on. Are your business costs going to be greater than your company’s income for a few months? Keep a realistic pipeline to help you forecast your financial needs.

2. Avoid needless spending.Unnecessary expenses can really be inhibiting to cash flow goals. Make sure you, and your employees, adhere to budget standards and approved expenses. Consider using expense reports to help manage expenses.

3. Consider factoring your invoices.It’s an inevitable fact of business that you will have a few slow-paying customers. There is a proven solution called accounts receivable financing, or factoring, that allows you to get upfront cash so you don’t have to wait 30-60 days for a payment. A factoring company essentially purchases your invoices so you can get immediate cash to use for upfront business costs. Many factoring companies allow you to choose the customers you want to factor, giving you the financial control you need to run your business.

4. Plan for seasonal changes.Know your business and when the seasonal peaks and dips occur. This will help you plan your year to ensure you have the cash you need to run your business. If your busy season is summer, keep a portion of money aside during those months to help fund for the slower months throughout the rest of the year.

5. Take advantage of loyalty and savings programs.Many companies offer loyalty and discount programs for everyday business expenses such as office supplies and fuel. For instance, Staples has a Staples Rewards Card that offers 5% back in rewards and instant savings on copy and print services. At eCapital, we offer a Fuel Card that provides instant savings at the pump. Small savings like these can really add up to considerable savings in your bank account.

Want more ways to help improve cash flow? Contact us at 800.705.1500 and chat with one of our experts!

Who is eCapital anyway? We’re in the business of buying your accounts receivable to give you fast cash and financial freedom.

Connect with us and find out more.

5 simple tips forIMPROVING CASH FLOW

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