10 Cashflow Tips for Small Business Owners

1. Invoice Quickly and Clearly Send invoices immediately after work is done. Use simple terms and offer online payment options to speed up payments.

2. Set Clear Payment Terms Shorten your payment terms where possible (e.g., 7 or 14 days instead of 30). Remind customers before the due date, not after.

3. Track Cashflow Weekly Don’t wait for month-end. Monitor your incoming and outgoing cash weekly to avoid surprises.

4. Build a Cash Buffer Aim to keep 1–3 months’ worth of expenses saved as a cash reserve. It buys you breathing space.

5. Offer Incentives for Early Payment Small discounts (e.g., 2–5%) for early payments can improve your cashflow dramatically.

6. Review Your Expenses Regularly Cut unnecessary subscriptions, renegotiate supplier terms, and avoid "set and forget" costs.

7. Plan for Seasonality If your business is seasonal, forecast slow periods and build reserves during busy months.

8. Finance Big Purchases Smartly Instead of draining cash for equipment or stock, consider leasing or flexible financing options.

9. Negotiate Longer Supplier Terms Stretch out your payables (ethically) while pulling forward your receivables. It widens your cashflow gap positively.

10. Create a Cashflow Forecast Predict your cash needs for the next 3, 6, and 12 months. Knowing when cash will tighten lets you act early.