CASHFLOW METHOD |
N/A | I ALREADY DO THIS | I SHOULD DO THIS |
| 1. Increase sales (particularly those involving cash payments) | |||
| 2. Increase sales of higher margin products/services | |||
| 3. Reduce direct and indirect costs and overhead expenses | |||
| 4. Defer discretionary projects that cannot achieve acceptable cash paybacks (within one year) | |||
| 5. Increase prices…… especially for slow payers | |||
| 6. Review the payment performances of customers (involve your sales force) | |||
| 7. Be more selective when offering credit | |||
| 8. Seek deposits or multiple stage payments in advance | |||
| 9. Reduce the amount & time of credit given to customers | |||
| 10. Invoice as soon as work has been done or order fulfilled | |||
| 11. Invoice immediately on-line, seek payment now due | |||
| 12. Improve all systems for billing and collection | |||
| 13. Use the 80/20 rule to control stock, debtors and Creditors | |||
| 14. Improve systems for paying suppliers …build trust | |||
| 15. Generate regular reports on Debtors and aging, inventivise collection | |||
| 16. Establish and adhere to sound credit practices-train staff | |||
| 17. Use aggressive collection techniques / Direct Debits | |||
| 18. Add late payment charges or fees where possible | |||
| 19. Increase the credit taken from suppliers, hold cheques for collection | |||
| 20. Negotiate extended credit from new and existing suppliers/ bankers | |||
| 21. Make prompt payments only when avail valuable/volume discounts | |||
| 22. Reduce inventory levels and increase through put of goods | |||
| 23. Sell off or return obsolete/excess stock | |||
| 24. Utilise commercial factoring, or discount facilities, to accelerate cash from sales e.g. Flender, Grid Finance, Grenke, Linked Finance. | |||
| 25. Defer or re-stage all capital expenditures | |||
| 26. Use alternative financing methods, such as leasing, to gain access to the use (but ownership) of productive assets | |||
| 27. Re-negotiate bank fees to reduce charges | |||
| 28. Seek to extend debt repayment periods with bank – sooner | |||
| 29. Net off or consolidate bank balances | |||
| 30. Sell off surplus assets or make them productive | |||
| 31. Enter into sale and lease-back arrangements for inc productivity | |||
| 32. Defer dividend payments | |||
| 33. Raise additional equity or convertible loans. | |||
| 34. Convert debt to equity | |||
| 35. Make medium-and short-term cash flow forecasts and update them regularly. |