Tips To Improve Cash Flow;

1. Improve Debtor’s aging;
   1. Requests for a deposits / tightening credit requirements
   1. Issue invoices promptly and follow up immediately if payments are slow.
   1. Give On Time Payment Incentives (2%) or early payment discounts (5%) to customers
   1. Insists on COD for slow paying customers instead of refusing to do business
2. Increase Creditor’s aging;
   1. Take full advantage of creditor’s payment term
   1. Consider carefully of creditor’s early payment discount; take into consideration own cash flow
   1. Supplier selection criteria; Lowest cost vs flexible payment terms
3. Improve inventory cycle;
   1. Quickly sell-off old/outdated inventory – at a very low margin / at cost.
   1. Identify new revenue stream that generates cashflow (example TESCO – shelving fees, own promoter)