© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - What Can Businesses Do to Improve Their Cash flow?
Posted 16th July 2021

What Can Businesses Do to Improve Their Cash flow?

From overdue invoices to staying on top of bills, it is estimated that one in four companies in the UK struggle with cash flow at some point, with as many as 61% having issues on a regular basis.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

What Can Businesses Do to Improve Their Cash flow?
Cash Flow

From overdue invoices to staying on top of bills, it is estimated that one in four companies in the UK struggle with cash flow at some point, with as many as 61% having issues on a regular basis.

The result can be very harrowing for a business, which means that they hold back on other important things that are needed for the company’s growth – and worst of all, other suppliers and staff members get paid late which is not good for productivity or overall morale.

But below are some of the most common ways to improve cash flow for a business and some innovative ways too.

 

Clear invoice terms

One of the most simple things you can do with your clients is have clear invoice terms included in your contracts. Whether you sell a product or a service, making payment terms very clear is essential to getting paid on time, such as 30 days or 60 day periods.

Depending on your business, you can also ask for deposits or partial payment upfront and this can be very common for certain industries such as agency work, construction, catering and more.

To make sure that invoices are paid smoothly, it is always worth being in touch directly with the person responsible for paying invoices, rather than allowing a member of staff to pass this onto the accounts team. If you have direct contact with someone from the accounts department, you can always ensure that they have the right information about your and your bank information and also just send a little reminder before payment is due, just to ensure that things run smoothly.

 

Business loans

Business loans are very common and exist in many shapes and forms. A business loan can be unsecured or secured against assets, invoices, credit overdrafts, facilities and more.

The rates for business loans can be very affordable, with Lending Expert offering rates from 2.6% APR.

Every loan will be different and some are better for those businesses who are starting out and some products may require a minimum turnover and at least two years of trading.

Think carefully about how much you need to borrow and how long for. You want to avoid overborrowing since this can result in just paying off more interest – and you want to have the flexibility to pay off early or top up if you ever need to.



Using credit cards to pay staff

Staff overheads can be the highest cost for some businesses and if you run a small company, you can find ways to pay staff each month using a credit card. This can give you an extra 30 days to pay off the finance and be completely interest-free – helping you stay on top of cash flow and avoid getting overwhelmed by costs.

Whether you use Paypal, Wise, Curve or Capital on Tap, there are some effective ways to pay off staff using credit and there are ways to earn points, miles and other rewards too – and for the employee, there is no difference once it enters their bank account!

 

Analysing your staff and office requirements

Covid has made business owners think carefully about their staff and office requirements, with people realising the potential savings from freelancers and remote working.

Whilst having a physical office and staff members working 5 days per week is very traditional, companies today are realising that this does not necessarily need to be the case.

Post pandemic, some businesses have realised that they do not even need an office, which creates a huge saving for companies, with the average firm spending around £500 per person on a desk each month, based on figures in London.

In addition, whilst having a job for 5 days a week is considered the ‘norm,’ there is a strong business case to work with freelancers or have your staff working only 3 or 4 days per week.

By truly assessing your staff and office needs, this can massively open up cash flow for you and your business.

Categories: Finance, News


You Might Also Like
Read Full PostRead - Eye Icon
Real Estate Investment Strategy 2023
News
23/02/2023Real Estate Investment Strategy 2023

Investing in real estate allows for the diversification of portfolios and the generation of passive income. You can start as a beginner in real estate investing and become a successful investor.

Read Full PostRead - Eye Icon
AI To the Rescue: First Aid for Busy Contact Centres in Local Government
Innovation
24/08/2020AI To the Rescue: First Aid for Busy Contact Centres in Local Government

Can Artificial Intelligence (AI) really deflect calls away from the contact centre? This is the question many local government organisations are asking as they strive to serve the community at reduced cost.

Read Full PostRead - Eye Icon
Injury at Work; What to Do If You Get Hurt on the Job
News
17/06/2024Injury at Work; What to Do If You Get Hurt on the Job

Injury at Work; What to Do If You Get Hurt on the Job Suffering an injury at work can be a tough situation, not just physically but emotionally and financially too. Knowing the right steps to take after getting injured on the job is crucial to ensure you get t

Read Full PostRead - Eye Icon
Thorndyke: Trusted Independent DOOH Verification
M&A
12/09/2023Thorndyke: Trusted Independent DOOH Verification

Headquartered out of Sydney, thorndyke is an Australian company that delivers independent third-party measurement and verification for advertisers and media owners in the DOOH (Digital Out-Of-Home) space.

Read Full PostRead - Eye Icon
CMS Advise During Echo BV’s Acquisition of a Stake in Echo Investment
Legal
20/08/2015CMS Advise During Echo BV’s Acquisition of a Stake in Echo Investment

CMS Advise During Echo BV’s Acquisition of a Stake in Echo Investment

Read Full PostRead - Eye Icon
Everything You Wanted To Know About Becoming An LLC
Legal
29/07/2022Everything You Wanted To Know About Becoming An LLC

In the 90s, limited liability companies (LLCs) rose in popularity as the newest business entity structure available in the United States. Budding companies enjoyed the liability protection provided by this formation style because it keeps personal assets separ

Read Full PostRead - Eye Icon
2016’s Most Innovative Hedge Fund Manager, Luxembourg
Innovation
30/06/20162016’s Most Innovative Hedge Fund Manager, Luxembourg

Specialising in both, open-ended investment funds and related private equity fund transactions, Carlisle Management Company is a holistic alternative investment manager, assuming a wide range of tasks over the entire life cycle of the investment

Read Full PostRead - Eye Icon
Financing a Sustainable Future: High-Level Working Group On Green & Sustainability Sukuk Releases Its First Report
Corporate Social Responsibility
26/10/2022Financing a Sustainable Future: High-Level Working Group On Green & Sustainability Sukuk Releases Its First Report

Global green and sustainability sukuk issuance totalled $4.4 billion during the first half of 2022, following a record annual issuance of $6.1 billion in 2021, according to data published by the High-Level Working Group (HLWG) on Green and Sustainability Sukuk

Read Full PostRead - Eye Icon
Skadden Advises NFP Acquisition of BWD
Finance
13/08/2015Skadden Advises NFP Acquisition of BWD

Skadden Advises NFP Acquisition of BWD



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow