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Four Ways to Improve Cash Flow

by Hal Levenson on Feb 12, 2012 2:00:00 PM

TrilogyTrilogy helps change businesses everyday by improving clients’ cash flow. Have a cash flow problem? Consider these four solutions and their real-world results.

Solution: Project and monitor cash flow to give a greater degree of predictability on what you can invest.

Solution: Shorten your “total” cash cycle by billing faster, collecting quicker and manage your vendors.

Solution: Pay sales people when the company is paid, enhancing cash flow and improving collections.

Solution: Match debt with needs and assets. Clients have:

1. Utilized a line of credit for:

  • Purchasing Inventory
  • Carrying accounts receivable

2. Utilized long term debt for fixed assets and expansion needs

Each of these practices resulted in sustainable results:

  • By resolving cash flow problems, clients have reported stronger relationships with their banks and the ability to get better terms.
  • They have taken advantage of opportunities to expand in new areas and held back growing until the company could afford to grow.
  • By having additional cash, you can take advantage of vendor discounts, negotiate better prices and be more competitive.
  • Tying salespeople to cash payments enhances collections, shortens the days of receivables and has saved over 50% in bad debt write-offs.
  • Matching debt will improve liquidity, reduce pressure to meet cash flow needs and allow companies to invest in the future growth.

Cash flow is vital to the health of any business. Today, you can’t afford to do the same thing and expect a different result. Contact Trilogy today to get started on new solutions for sustainable results.

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