Cash flow is the life blood of every business and lack of cash is a much more significant cause of business failure than trading losses. The management and preservation of cash is a priority task which must be performed day in and day out in every business. This task is so routine that its importance is often overlooked. Here are some ways to improve cash flow:

* Sales - Become more selective when granting credit.
* Costs & Systems - Improve systems for billing and collection.
* Credit Management - Generate regular reports on receivable ratios and aging.
* Purchasing - Make prompt payments only when worthwhile discounts apply.
* Inventory - Sell off or return obsolete/excess inventory.
* Investment - Use leasing etc. to gain access to the use of productive assets.
* Financing - Use factoring or discounting to accelerate receipts from sales.



Keywords: How to Improve Cash Flow,Sales,Credit Management,Purchasing,Inventory ,Financing ,Investment,productive assets,business