How To Grow Your Business During The Crisis Recovery Stage?
When the business is recovering from a crisis you may be faced with having a profitable business. However, you could be experiencing some cash flow shortage.
Having a lack of adequate cash flow is one of the main causes of small business failure. It is important to monitor your organisation's financial position and address any additional funding requirements to assist with the company's growth strategy.
There are several ways that the business can remain profitable while having adequate cash flow as outlined below.
Collect Customer Payments
Ensure that customer's invoices are sent out promptly. Implement a debt collection process so that when the invoice remains unpaid by the due date, you can follow-up with clients immediately to obtain the payment.
Implement a process to minimise the chance of a client not paying after the work has been completed. You must conduct adequate credit checks on all customers to minimise putting your business cash flow at risk.
Consider asking for deposits before you commence work with the client to assist in managing your business cash flow and your client's deliverables.
Financial Reports Review
Regularly review your business financial reports to determine how much funds are being received and how the funds are spent.
Review the list of outstanding clients invoices regularly to assess which customers are not paying their bills.
Assess your business liabilities as small liabilities can quickly add up. To assist in managing your cash flow much better, It is important to know how much do you owe, how much you pay every month and when your bills are due to be paid.
Organise Your Finances
Keeping track of the funds coming into the business and where the funds go can help in managing your cash flow much better. It will help to ensure the organisation remains profitable while maintaining adequate cash in the bank.
Boost Your Cash Flow
To assist in your business recovery phase and to maximise your organisation's growth with minimum impact on cash flow you may need external sources of funds such as flexible loans.
The Capify COVID Flexible Loan is a short-term finance solution that provides business owners with peace of mind during uncertain times as there are no fixed monthly repayments.
This type of funding is based on a percentage of the organisation's future sales so the repayments are aligned with the business turnover. In this financing solution when the customers paid, that is when you pay the loan repayment.
It allows business owners the flexibility of accessing working capital without worrying about the impact of having fluctuating cash flow in the future as there are no fixed loan repayments.
Need funds to sustain and grow your business?
Click here if you need a cash injection to help push your business forward with the COVID Flexible Loan solution which supports organisations in the growth stage of COVID recovery.
You can receive a pre-approval within 24 hours without affecting your credit score and it only takes 60 seconds to find out if you qualify.
This article is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek the services of competent professionals. This article contains general information only.
Dynamic Zenergy is Capify's Small Business Partner.
|Tags: Business Finance|