Four tips to improve your cashflow
Keep an eye on your spending
Minimising essential expenses and eliminating unnecessary ones is central to the success of any business. But you knew that already.
One thing you can do in this area to address cashflow specifically is to think of cash and credit expenses differently. While both count as outgoings, buying stock on credit, for example, means your cashflow won’t be impacted until payment is due.
Don’t try to pay off all your debts at once
Sounds counterintuitive, right? But paying off all your debts in one go can leave you short on available funds, which, as we’ve seen, can lead to negative cashflow. Expenses you hadn’t anticipated can crop up at any time. Similarly, your business’s income might slow down for reasons beyond your control.
Holding on to cash you don’t need to spend immediately (such as bills with extended payment terms) can leave you with more options if and when the unexpected strikes.
In fact, it’s a good idea to open a separate business savings account for any such spare funds. Not only will you be keeping them in a safe place, you’ll be earning interest too.
Forecast, forecast, forecast
Conducting regular cashflow forecasts is essential. While doing so won’t guarantee yours remains positive at all times , you will at least get advance warning of periods of negative cashflow coming down the track. Forewarned is forearmed, as they say.
Credit is not your enemy
Most of us are brought up to be wary of credit, and for good reason. But while that’s sound advice for individuals, things are slightly different when it comes to businesses.
As we’ve already seen, there will inevitably be times when you don’t have the funds available to cover all your business expenses. In such instances, using a business loan or overdraft to bridge the gap could be a perfectly valid and responsible thing to do.
We’re here to help
Great Southern Bank Business+ Unsecured Loan and Business+ Unsecured Overdraft have been created with small businesses in mind. Here’s a quick look at some of the features which could help you stay on top of your cashflow.
Business+ Unsecured Loan
- Competitive interest rate
- Access up to $50,000 without using your assets as security
- Fixed interest rate means your repayments don’t change over the life of the loan
Business+ Unsecured Overdraft
- Competitive interest rate
- Interest is charged on your balance, not your total limit
- Access up to $50,000 without using your assets as security
You can apply for either in minutes with Great Southern Bank Business+. Get started today and manage your business’s finances from the convenience of your phone.
Also, don’t forget to check out our Business Hub. You’ll find heaps of free resources and plenty of helpful information to keep your business humming.
