Many companies can find themselves struggling to build up cash reserves. After all, breaking into a new industry can be hard enough, but doing so in a profitable manner that you can sustain for the long term is nigh on impossible. Read on to find out 3 cashflow tips you can employ to ensure that your books stay balanced, and your company can continue to grow.
Always shop around
It’s understandable that you might not want to shop around for every single expenditure. After all, researching properly will take hours, which is time that can be spent on other things. However, in business, every single penny counts, especially when you’re only a small enterprise. By finding as many bargains as possible, you can put yourself in a position to save potentially thousands of pounds over the course of a year. This could make the difference between an unhealthy looking deficit and a profit.
In business, it can be extremely expensive to buy a lot of the equipment you need outright. After all, it could be designed for an extremely specific job and cost thousands of pounds, but only be useful every once in a while. This is why leasing equipment rather than buying it outright can be the best way forward. You only pay a very small percentage of the cost of buying and use the equipment exactly as you would otherwise. It’s a very simple way of saving money whilst not actually losing out on anything.
Try to time your payments
If possible, you should try to structure your payments. Banks may charge overdraft fees, so having your bank balance fall below £0 at any point can be costly. If you time your incoming payments to go into the account before any outgoings are made, you know you’ll always be covered. Although this doesn’t impact your cash flow on the face of it, by deliberately planning your payments and income, you can keep your company out of an overdraft and avoid potentially crippling bank fees.
3 cashflow tips – where to find out more
Tower Leasing have supported the investment and growth of over 40,000 SMEs. No matter what your plans are, we have the business finance products in place and the expertise to help you see them through.
- We have a number of informative articles on cashflow in our blog section. Why not read our blog “4 reasons why you should prioritise cash flow as a small business.”
- Find out more about finance options for small businesses.
- Or get in touch with us to discuss how we may be able to help with finance for your business.