You have a lot of things to concern yourself when it comes to your business. A big source for many companies is how to generate more cashflow when you need it. After all, especially if your business is just starting out, it seems that all the cash you get has to be immediately spent on other expenses. Fortunately, there are a number of ways that you can increase your cashflow exactly when you need it, both in the short and long term.
Have Life Insurance? Sell It
Not all ways to up your cashflow have to be centered on traditional, client-focused methods. One of the more creative ways is to sell your life insurance policy for cash if you have one. Typically, this is done through a life settlement or the sale of your policy to a third party. You get a lump sum of cash up front, and the third party receives the death benefits when you pass. If you want to learn more about this process, you can review life insurance policy guides online. These guides will outline all the steps you need to take as well as the pros and cons of the procedure.
Sell Old Assets
Sometimes, the cash you may need may already be right at your fingertips. If your business makes use of lots of equipment or supplies, you can consider selling off older assets in-person or even to online vendors. There’s no need for them to collect dust in your storage when they can make you a nice profit instead.
Sell Old Inventory
Similar to selling assets, you can also consider selling old inventory items. Old inventory that hasn’t sold takes up space that could be filled with items that will sell. Luckily, many other companies will buy your old stock to sell themselves. Alternatively, you can sell these items at a discount or as part of a bulk package to either other companies or your customers who may be interested in this new selling method.
Re-Evaluate Your Clients
If you are in serious need of cash, this is a tip from big brands that you can adopt, it may be time to do a strict re-evaluation of your clients. Are there individuals who are always behind on their payments? Are there some that have skipped out on payments altogether? If so, it may be time to get rid of them. This provides you a long-term cashflow solution, as you make room for clients that actually provide you with profits down the line.
Restructure Your Payment Arrangement
Speaking of clients and payments, it may also be a good idea to look at your payment policies. Are you setting up clear instructions for how and when your clients should pay you? You can set up payment policies on your website or send regular reminders via email or phone. You can also consider asking for payment in advance instead of when your product or service is delivered. This is another advisable long-term solution for increasing your cash flow.