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6 Ways to Improve Business Cash Flow

Ways to Improve Your Business Cash Flow

With consumers and businesses alike buckling down on their spending during this topsy-turvy economic spell, focusing on efficient cash flow can help your organization survive troubled times.

Try these tips for converting products and services into cash. Know, though, that some of the suggested strategies might be at odds with one another; the idea is to choose and combine the specific tactics that work best for your business.

Sell more. Your business can increase its cash flow somewhat easily by bringing in more sales or by expanding a product or service line. Try hiring additional sales people or increasing your target market size.

Get paid promptly. Be sure payment schedules are met, and call customers promptly when they fall behind. Consider offering percentage discounts for early payments or setting your terms to be payment-in-full when products or services are delivered. For long-term projects, divide the fee into segments and request payment in advance of each new phase.

Shorten your days sales outstanding (DSO). A DSO analysis provides general information about the number of days on average that customers take to pay invoices. To figure DSO, divide total receivables by total credit sales for the period, then multiply by the number of days in the period. The lower the figure, the faster you’re getting paid. Keeping an eye on this number allows you to be proactive in collecting accounts on time.

Cut down on inventory. A sale is one way to quickly rid your business of inventory that is not moving – plus it frees up valuable space for other products that can sell better. Another option is to ask the distributor who sold you the product to buy it all back. You may be assessed an administrative fee to return product, but this tactic frees up capital and space.

Work with vendors. Always ask for longer payment terms and favor suppliers that offer them. Negotiate terms with your vendors for 30 days or more (instead of upon delivery) so you have an opportunity to complete the work, bill your customers and receive payments prior to paying your vendor.

Secure a line of credit. At times, borrowing the cash you need can help your business run smoothly. Often rates on a business line of credit are less than the late fees your vendors will charge. The line of credit can help you cover a lapse in cash flow for short periods of time. Just be sure not to borrow too much, and always have a plan in place to pay it back on time.

Seek Expert Help
Now more than ever, a keen eye on cash flow is vital for your business. The business bankers at MutualBank can suggest cash management strategies to help you further boost your cash flow. Call 800-382-8031 to schedule a customized planning session with your MutualBanker today. Go ahead...live a better life!

Contact a Representative Today

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    Thursday, June 25, 2015

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Personal Social Media Account Security

For many of us, social media has become a part of our everyday lives and helps us conveniently keep tabs on the people and topics we care most about.

Recently however, there has been an increase of social media account take overs by cybercriminals. As stated in the media, one contributing factor in some of the social media account takeovers has been the use of weak passwords.


Tips for creating a stronger password:


  • Passwords should typically:
    • be at least 8 characters in length
    • contain at least 1 number
    • contain at least 1 special character (!@#$$%)
    • contain both upper and lower case characters.
  • Do not use your name, date of birth, maiden name, mother’s maiden name, address, or other easily guessable words for passwords. 
  • Another way to create a strong password is to use a series of words that do not relate to each other. For example, JumpingFastRelaxStop!#.

 


Social media additional security options:


Another way to help avoid social media account takeover is to use the additional security options available. Two-factor authentication adds an extra layer of security that drastically decreases your chances of account takeover. Two-factor authentication is essentially the using of two separate components to verify your identity, the combination of something you HAVE with something you KNOW. A good example of two-factor authentication you most likely are already used to is withdrawing cash from an ATM, for example. Having both your debit card AND knowing a pin number is required to complete the withdrawal and protect your identity.

A popular and convenient two-factor authentication method is using a combination of both an online password and a text message verification sent to your phone. Enabling this type of authentication typically follows this process:

  1. Enter your password into Facebook or another website
  2. Immediately receive a text on your phone with a temporary pass key
  3. Enter the passkey received back on the site/app and you’re logged in

This may seem like overkill, but enabling this two-factor authentication will drastically decrease the chances of your social accounts being hacked. And actually, the process of setting up and using this authentication is pretty simple and convenient.

 


How to enable two-factor authentication:


Many popular social networks like Facebook, Twitter, LinkedIN, and others already support two-factor authentication. To learn more about how to do so on the most popular sites on the web, be sure to check out this article:

http://socialcustomer.com/2014/04/how-to-enable-two-factor-authentication-on-50-top-websites-including-facebook-twitter-and-others.html

Wednesday, April 22, 2015

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6 Ways to Improve Business Cash Flow

Ways to Improve Your Business Cash Flow

With consumers and businesses alike buckling down on their spending during this topsy-turvy economic spell, focusing on efficient cash flow can help your organization survive troubled times.

Try these tips for converting products and services into cash. Know, though, that some of the suggested strategies might be at odds with one another; the idea is to choose and combine the specific tactics that work best for your business.

Sell more. Your business can increase its cash flow somewhat easily by bringing in more sales or by expanding a product or service line. Try hiring additional sales people or increasing your target market size.

Get paid promptly. Be sure payment schedules are met, and call customers promptly when they fall behind. Consider offering percentage discounts for early payments or setting your terms to be payment-in-full when products or services are delivered. For long-term projects, divide the fee into segments and request payment in advance of each new phase.

Shorten your days sales outstanding (DSO). A DSO analysis provides general information about the number of days on average that customers take to pay invoices. To figure DSO, divide total receivables by total credit sales for the period, then multiply by the number of days in the period. The lower the figure, the faster you’re getting paid. Keeping an eye on this number allows you to be proactive in collecting accounts on time.

Cut down on inventory. A sale is one way to quickly rid your business of inventory that is not moving – plus it frees up valuable space for other products that can sell better. Another option is to ask the distributor who sold you the product to buy it all back. You may be assessed an administrative fee to return product, but this tactic frees up capital and space.

Work with vendors. Always ask for longer payment terms and favor suppliers that offer them. Negotiate terms with your vendors for 30 days or more (instead of upon delivery) so you have an opportunity to complete the work, bill your customers and receive payments prior to paying your vendor.

Secure a line of credit. At times, borrowing the cash you need can help your business run smoothly. Often rates on a business line of credit are less than the late fees your vendors will charge. The line of credit can help you cover a lapse in cash flow for short periods of time. Just be sure not to borrow too much, and always have a plan in place to pay it back on time.

Seek Expert Help
Now more than ever, a keen eye on cash flow is vital for your business. The business bankers at MutualBank can suggest cash management strategies to help you further boost your cash flow. Call 800-382-8031 to schedule a customized planning session with your MutualBanker today. Go ahead...live a better life!

Contact a Representative Today

Back to Education Resources

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