Business & Personal Checking Accounts – MutualBank

 

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

Mutual News
  • Mutualfirst Financial, Inc. Announces Agreement With Major Stockholder 

    Muncie, Indiana - February 27, 2015 – MutualFirst...

    Monday, March 2, 2015

    READ ARTICLE

View Archived Releases
Mutual Blog

Proactive Steps to Take in Light of Anthem Data Breach

Chances are you are a person who has Anthem insurance coverage or you know someone who does. As a result, either you or your friend has a reason to be concerned.

A typical data breach includes a compromise of debit card numbers or partial personal identifying information. This kind of breach, though inconvenient, can typically be ‘fixed’. An initial investigation indicates that the Anthem breach includes a compromise of name, birthday and/or social security number. This kind of information is all one needs to steal someone’s identity.

According to Anthem this particular breach could affect up to 80 million people. Instead of trying to ignore this has happened or just being upset, it’s now time for you to be educated and try to protect yourself as best as you can. We have some tips that will help you accomplish that.


1. Review Your Statements


First, take a moment each month to view your eStatement or monthly statement. You can monitor your accounts throughout the month with Online Banking and the MutualBank App. Monitoring your accounts will give you the quickest opportunity to see if your accounts have been compromised. If you notice any transactions that are unfamiliar or questionable, please get in touch with your MutualBanker. Call us at 800-382-8031.


2. Be Cautious with Any Anthem Emails You Receive


Next, if you receive an email stating it is from Anthem, be cautious. Anthem’s website warns customers not to reply with information, click any links or open any attachments within the email. Anthem is not calling their customers and will not ask for information. Never give your credit card information, social security number, or other sensitive information to someone via email or over the phone.


3. Consider Freezing Your Credit


If you are a resident in Indiana, the Attorney General’s office website (http://www.in.gov/attorneygeneral/2853.htm) is offering and encouraging you to sign up for a free credit freeze with each of the three credit bureaus. A credit freeze places a hold on your credit where a new line of credit could not be obtained without you unfreezing your credit. This doesn’t affect already open credit lines like an existing credit card, yet helps to protect you against someone opening new lines of credit in your name.


4. Keep in the Know


Finally, try to keep in the loop on the Anthem Breach. The best source for current information about this breach can be found at Anthem’s Frequently Asked Questions. (http://www.anthemfacts.com/faq)

MutualBank is here to help inform you of ways to help protect against identity theft. Thank you for trusting us.

Sunday, February 15, 2015

READ BLOG ENTRY

View Archived Posts

Connect with us:

(800) 382-8031

  • Facebook
  • Youtube
  • twitter
  • RSS Feed
 
 
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

Contact Us
Mobile Capture

24 Hour MutuaLine:

765-747-2931 or 800-289-4376

© MutualBank | Member FDIC | Privacy Policy