How To Maintain Positive Cash Flow in Business | Behalf
3 Easy Tricks to Maintaining a Positive Cash Flow
It’s time that we addressed the elephant in the business owner’s room: cash flow. Not many like to talk about this often sore subject, but since business success depends on positive cash flow, it deserves some serious attention.
What is positive cash flow?
Positive cash flow simply means you have more cash coming into your business than cash going out, which is crucial to pay for expenses and investments that will help grow your business. Another way to understand the importance of positive cash flow is a household analogy: your kitchen pantry. Think of your groceries at home – you always want more coming in than out to maintain personal health. Similarly, you want positive cash flow for business health.
Here are 3 surprisingly simple ways to improve your business cash flow.
1) Use Time to Your Advantage
Don’t pay invoices early unless it’s absolutely necessary. Figure out the latest date you can pay creditors back without breaking their terms. The delay keeps the cash in your account, where it’s most useful, for longer.
2) Cut Costs | Save Lots
Look for hidden opportunities to save and earn money. For example, if you are looking to buy an item that your business will use temporarily, leasing may be the better option. Office equipment has a long shelf life, although your needs may continuously change. As you outgrow big ticket items, you can quickly resell them to boost your cash flow.
3) Don’t Shy From the Credit Line
Often small business owners make a business line of credit their last resort. Unfortunately, that causes them to blow through a lot of their own cash reserves before seeking help. Obtaining a business line of credit early increases your company’s purchasing power, freeing up more capital for you and creating a cushion for your cash flow.
How Behalf Can Help Improve Business Cash Flow
With no hidden fees, Behalf provides business credit lines to small business owners, giving them more control to improve positive cash flow. You can open a line and begin purchasing for your business immediately. With Behalf, you can extend your payments for up to six months on each purchase, keeping more cash on hand for as long as possible.