5 Approaches to optimize business cash flow

For smaller companies, managing cash flow efficiently is crucial for conducting daily operations smoothly, earning profits faster, maintaining operations efficient, lowering total operating costs, and providing a much better customer experience.

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Contrary to profit, cash flow lets you know how much real cash is available to your company at any given time and how much you’ll spend — and that’s why cash is king, even because they say.

Below are five approaches to master cash flow optimisation.

  1. Negotiate payment terms

Whether you’re a wholesaler or a B2C merchant, being compensated promptly is important to maintaining your cash flow healthy. Ensure that your payment terms and days payable are clearly communicated to customers, and follow up on overdue accounts. Additionally, think about structuring arrangements to include discounts for early payment and charging interest for late payments by customers.


  1. Enhance the consumer experience

It’s no secret that in the event that you make it effortless for customers to cover, the likelier they’ll be to cover you on time! Using a B2B payment gateway like not simply makes it effortless for you to charge customers but in addition offers a quick and convenient payment method for them so you can expect prompt payments and steady cash flow.

  1. Do cash flow forecasts

Taking the opportunity to complete a monthly cash flow forecast may give you a fantastic indication about how much cash you’ll have available at the future. With this advice, you can start to budget for coming expenses and think about ways that you can invest back into the organization. Try our totally free cash flow tool to estimate earnings, orders, and cash over time.4

4. Reduce inventory carrying costs by managing inventory efficiently

Successful inventory management and forecasting is key to keeping inventory keeping costs as low as possible and freeing up cash to invest in other places. Consider employing a dedicated inventory management system so that you can accurately track stock levels and make purchase orders only when you need to — reducing the prospect of adverse cash flow and problems like

5. Diversify your customer base

Variety is the spice of life, and the exact same is true to your client base. Work to your multi-channel or strategy so that you can be selling to multiple customers across multiple platforms concurrently. By doing this, you will not need to rely upon one source for earnings, and you will start to see cash flowing into the company in a steadier pace.


Once it comes to optimizing company cash flow, TradeGecko can assist with all of the points above by giving you the tools to handle your inventory efficiently, facilitating rapid and effortless customer payments, selling across multiple stations, obtaining sales and inventory reports, and managing crucial business operations by one dash.

Plus, using our free cash flow model, it is possible to also accurately monitor earnings orders, and cash — giving you insights into what your own cash flow will look like over time and allowing you to plan ahead.

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