Something to ponder on: No matter how many good reasons you have for acquiring the funding you need–whether you will use it to finance a new project for your start-up or streamline the operations of your SME company, you’re still at risk of being rejected for financial backups.
Sure, unsecured loans will enable you to apply for extra funds even without providing any collateral or physical assets (such as property, inventory or vehicles); however, if you have a poor credit history and a weak cash flow, your chance of being accepted is sadly low.
Why? It is because lending institutions, potential investors, funders and creditors want assurance that you know how to take care of your resources responsibly and you can pay back your debts on time. And for that reason, your business is worth investing in. Likewise, note that out of all the key factors lenders consider, cash flow which is the lifeblood of your business, will always be their top consideration. So, improving your cash flow is vital for your borrowing success.
Thankfully, there’s a reliable cash flow tool, Moolamore, that can help you closely monitor your finances, and there are different ways you can use to maximise your cash flow which you will learn as you read this blog.
Let’s start.
Ways to Maximise / Enhance Cash Flow
Here are the different methods to help you optimise your cash flow health so you can increase your chances of getting approved and obtaining the funds you need.
Utilise an Expert Tool To Manage Your Cash Flow and Build Financial Data
What better way to ensure that you are taking care of your cash flow is, of course, to use an expert tool—Moolamore.
With its simple interface and user-friendly dashboard loaded with innovative features—Moolamore will give you a quick, clear and complete visual view of what’s happening with your cash based on accurate information. That way, you will know if you are still on track in running your business, and you can prevent or provide an informed solution to a cash flow issue before it gets out of hand.
Likewise, aside from ensuring that your business has a positive cash flow, Moolamore can also help prepare your borrowing requirements seamlessly. With Moolamore, it’s easier to prepare your historical financial data and projected financial figures, which lenders will use to evaluate your eligibility.
Take Advantage of Technology
As a business owner, it is worthwhile to think about the latest technological advancements and AI-integrated programs that can enhance various functions in your company. These innovations will also allow you to focus more on growing your business and less time-fighting fires.
For instance, leveraging an automated and advanced tool, Moolamore, will improve the efficiency of your accounting and cash flow management. It is built to automate calculations and projections, making it a perfect solution for entrepreneurs like you looking to optimise your finances and take your business operations to the next level.
Send Invoices Immediately
Once more, rationale things invoice points the distinctions between invoices you have sent versus invoices that have been paid. That $15,000 invoice only works if there’s money available to cover your expenses. Therefore, you should be bold in sending invoices.
Consider switching to a billing model where you send invoices for completed work within a project rather than delivering them once a month. For example, suppose your organisation is an advertising agency. In that case, you can send your invoices not on the last day of the month, but when you reach a particular number of completed ad campaigns, media expenditures, or other tasks.
Adjust Your Inventory as Needed
Take account of inventory to identify items that aren’t selling well. These products create cash flow problems since you have spent money to obtain them yet need to sell them, which exposes your cash flow to loss. By lowering the prices of these items in the long term and not purchasing additional inventory after you exhaust what you currently have, you’ll be better able to harness your cash and gain cash flow. Of course, you should spend even more on items that consistently sell well.
Lease Your Equipment Instead of Buying Them
While it may be cheaper in the long term, the expense of using new equipment and updating outdated equipment can add up quickly. Leasing your equipment instead can help defray your short-term costs. In addition, you won’t need to upgrade or sell obsolete equipment you have purchased, and capital leases often let you qualify for tax credits that reduce your income tax. As such, you’ll have less cash leaving your finances in large lump sums and a more steady savings account.
To sum it up, here are the ways to maximise your cash flow that can help attract potential funders, such as unsecured loans and increase your chances of start-up business funding success:
- Utilise an Expert Tool To Manage Your Cash Flow and Build Financial Data
- Take Advantage of Technology
- Send Invoices Immediately
- Adjust Your Inventory as Needed
- Lease Your Equipment Instead of Buying Them
Final Words
Taking proactive steps to manage, maximise and protect your cash flow can help you gain that funding approval for your business. So make sure you apply the methods in this blog and utilise an export tool Moolamore to improve your cash position and achieve the financial security you need to push your business forward.
Ensure reliable cash flow and increase your odds of financial backup success if you start using Moolamore. Schedule a demo today!
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