5 unavoidable Cash Flow Problems Your Small Business Will Experience And The Solutions
Cash or money is important to the proper, effective and smooth running of any business or enterprise. It is, therefore, safe to say that without money, your business will collapse.
As a result, we discuss some cash flow problems that are likely to affect the smooth running of your business.
This will ensure that you are fully prepared for any uncertainties. It must be mentioned that 90% of small businesses or startups fail due to poor cash flow.
1. Delayed payment
After providing a service, you expect to be paid immediately, this is not the case most times. You offer your service and get paid later. However, this is not good for your business. In fact, if your clients pay very late, your debt profile will steadily rise. To reduce the effect of late payment, set a timeline for your clients or customers to make payment and use your relationship with the manager to encourage him or her to pay you as early as possible. You can also reduce the credit you offer your customers.