As the end of the year approaches for a lot of industries, a lot of businesses experience diminished cashflow. This is especially true in the B2B sector when businesses are spending less.
This can be also be attributed to businesses delaying payments until after the Holidays.
In this article, I will be going over several different ways you should be able to increase your business’ cash flow this Christmas season.
1. Increasing Your Marketing Spending
The fact is, your competition is right where you are. They are going to be looking for the same ways to decrease their expenses. Because of this, they will usually limit the amount they are spending on their marketing efforts.
By recognising this and doing the opposite, you will be able to take advantage of their mistakes. Marketing is something that will only boost your business’ presence within the marketplace. By boosting your marketing efforts when your competition is decreasing theirs, it can provide you with a compounding effect which can help maximise your market share considerably.
2. Thank Your Customers/Clients
During the holidays, you want to look to thank all of your customers and clients. You want to ensure they feel properly valued. Every customer will appreciate this kind of validation.
It is very likely they will look to pay your invoice sooner if you are the one reaching out to them before the Christmas season. This can help you get paid sooner.
3. Send Out Invoices Sooner Rather Than Later
You should be sending out your invoices as soon as possible. When you are looking to get paid, you want to ensure that you are giving your clients the invoices right when the job is completed or when the goods are delivered. Don’t delay sending out invoices because you will only be delaying the time it takes for you to get paid.
4. Make It Accessible
You want to make it as accessible as possible for your clients to pay. Offer everything from the ability to pay with their mobile phones, with a credit card and even through debit cards. By minimising the barriers to paying, you will get paid much faster.
5. Review Your Accounts Receivables
Do you have an accounts receivable system in place that is optimised? Are you constantly sending out reminders for those who are late to pay? Do you have a system in place where you are calling them? These are things you should be doing.
6. Manage Your Suppliers
You want to try to negotiate better terms with your suppliers. Try to get extended terms during the holidays when your cash flow is limited. Try to take advantage as much as possible of the favourable terms.
7. Review Your Working Capital Requirements
You want to think about whether or not you require working capital finance. Are you in need of increasing your overdraft? Do you need to increase capital into your business? Are you aware of what invoice factoring is?
By getting on top of your cash flow before the Christmas season, you will be able to give yourself a much less stressful break.
If you are looking to maximise your cash flow this period, you will want to call BJ right now. You can reach us at 0800 002 453. We will be able to see whether or not Invoice Factors can help you with your problems. We are based in Auckland but we provide service nationwide.
