Looking for a quick fix? The simple formula is to collect your receivables as fast as possible and slow down your payables without jeopardizing your relationship with the suppliers. Usually, Supplier uses the payment through credit card to extend the bad debt collection. If your business is growing at s rampant pace with the increasing profits each year it means you’re certainly headed in the right direction. But sometimes with the growing, profitable companies can hit with cash flow problems. It can happen because of the finance, operations or investing activities aren't running efficiently.
To improve the cash flow, here are the 7 ways to improve cash flow in your struggling small business.
1. Refresh your Inventory
Timely check up in inventory is necessary. Those goods you buy and are not moving at the same pace as your other products tie up a lot of cash. Instead of buying the same unsold product just get rid of it, try to sell it on discount or with some offers. Sometimes we get to fall in love few products and it becomes hard to walk away from it, hoping with that someday the demand get heighten, but that almost never happens.
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