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How can I increase my cashflow?

Cash is Kin but this is what most businesses struggle with. This comes best through maintaining a balance between debtors (who owe money to you) and creditors (whom you owe money to).


  • Revisit your terms of payment. Most small businesses could get away with a debtor term as low as 3 to 7 days. Of course, depending on the products, services or clientele, this might have to be adjusted.
  • Factor in and offer discounts for earlier payments.
  • For chronic defaulters, be stern. Don’t hesitate to add an Admin fee on top for having to chase for money. Remember, you have done the work and you ought to be paid.


  • Try negotiating longer creditor terms. Remember, like you, your creditors might not be very willing to give extended terms either
  • In these situations, try negotiating a good discount for earlier payments/ on-time payments
  • Remember to fix prices of supplies first, before you negotiate the discount
  • While some business owners are tempted to pay creditors as early as possible, hold on to the money till the payments are due.

Budgeting and Analysis:

  • This should probably be even before the debtor and creditor control. It is extremely important to set a budget so that you don’t blow it up.
  • Draw up an annualized budget – the best time to do it is the beginning of the year.
  • Keep a tab on expenses by analyzing every month to ensure you are not exceeding the budget
  • Make sure, you budget properly and include certain payments that you have to make even outside your normal P&L, such as tax payments. That’s all-cash going out.