Immediate Solutions to Cash Flow Problems in Times of Crisis
Understanding how to manage your independent insurance agency's cash flow is crucial to its success. But in times of crisis, proper cash flow management is not necessarily an easy task.
Due to the 2020 public health situation, an economic crisis has hit all countries around the world. Most companies struggle in different ways and having cash available for all rising needs is always a problem.
There is no doubt that cash flow management is particularly crucial for small businesses. Recently, we went through some important tips to help you improve your cash flow. Today we want to share some more detailed recommendations that can help you quickly solve your cash flow problems in times of crisis.
Pay the bills after their expiration date
Bills have an expiration date and while you do not want to send in your payment late, you are also not required to pay early. If you keep your accounts that are to be paid a little longer, you can keep more money in the bank, which can be a profitable solution when you have cash flow problems. Be sure to talk to your suppliers to let them know if you need to take this approach until you find your balance again. This will help you prevent damage to your relationship with your suppliers.
Minimize Stock Purchases
Keep your stock purchases to a minimum. Just buying what you need and doing it only when needed will help you free up some money.
Negotiate lower prices
There may be areas where you do not negotiate prices, but you can ask for discounts on others. Go through your list of providers and identify the ones you pay the most. Negotiating lower prices in exchange for long-term agreements can be an option that can save some money. business, especially when going through a rough patch. If you currently have a credit limit, it can help you keep some cash on hand to deal with unexpected situations.