If your business is struggling, you might be wondering how you can get sales up. Here are some ideas on how you can improve cash flow. 

Send Quality Invoices Quickly

First and foremost, don’t wait to send invoices. Receivables will come in more quickly if you send invoices out immediately. This might mean you shift your invoice model so that one is sent every time you complete work, rather than once or twice a month. But this is likely to increase cash flow because customers will pay you more quickly.

On the same note, make sure you know how to put together a good invoice. Invoices should be easy to read and terms should be clearly stated. Write due dates in bold and have them written out more than once in the invoice. Include clear instructions on making a payment as well, including payment type. Also, include any information about late fees. 

In addition, you can also consider offering discounts for early payment. This is the same as adding a late fee for delayed payment but will look like an incentive to your customer rather than a penalty. Even just a small discount will encourage your customers to pay up quickly. 

Use Electronic Payments

Similarly, make it easier for customers to pay you by accepting electronic payment forms. If customers can pay electronically, they are more likely to quickly pay. It is much more convenient to open a web browser and pay on a computer then send back a paper invoice with a check. Plus, you’ll get the payment more quickly. 

Likewise, you should also pay bills electronically. If you pay electronically, you can wait until the day a bill is due to pay it, rather than having to get it postmarked by the date. Consider a business credit card when making electronic payments as well. Some offer a grace period, even up to three weeks, which can increase your cash flow. 

Lease Equipment 

Another way to increase the cash flow is to lease equipment instead of buying it. It may seem counterintuitive to lease instead of buying since with leasing, you technically pay more for equipment. But unless you have a lot of cash on hand, it makes more sense to pay a bill for leasing rather than purchasing something upfront. This way, you still have cash available for day-to-day operations. You also won’t have to worry about upgrading or selling outdated equipment in a few years. 

If you think strategically and incorporate some of these ideas, you can increase cash flow for your struggling business.