All to often we are confronted with cash-flow problems. Lack of new business, clients paying later and later, etc. – which invariably brings us to think about reducing costs in our business.
But there is more to reducing costs than meets the eye, it can have a negative effect on business growth and productivity. Here are some other ways to make business life less stressful:-
- Better credit control
- Longer payment terms from suppliers
- Different payment terms for customers, i.e. money up front
- Reducing credit limits on late payers
- Early payment incentives, i.e. extra discount
All of these methods are available to you to improve cash-flow and reduce financing costs, before you take destructive cost cutting measures.