Innovative ways to manage your cash flow

Why cash flow needs daily attention

Short answer: Forecast and monitor cash flow often, collect what you are owed as soon as possible, and pay what you owe as late as your terms allow. Paying bills by card through B2Bpay can add up to 55 days interest-free on top.

Being nimble is a major advantage for a small business, but it can also bring fast turnover and sudden shortfalls. Keeping on top of money coming in and going out can be a daily challenge.

The cost of getting it wrong is real. A Wakefield Research survey of 500 Australian small businesses, cited when this article was first published, found that 50 percent had lost $10,000 or more by forgoing a project or sale specifically because of insufficient cash flow. Positive cash flow lets you sleep well at night, and gives you room to grow.

Forecast and monitor your cash flow constantly

Forecasting projected earnings and losses can feel as exciting as watching paint dry, but it is crucial. A forecast lets you make informed decisions about which parts of the business have room for revenue growth and where to cut costs.

The fast pace of a small business makes cash flow a moving target, and those constant changes are exactly why income and spending need close, frequent review. Many smart owners track cash flow every week.

B2Bpay gives you one secure online portal for all your payments: one-off, automatic and future-dated. If you also become a B2Bpay Biller, you can track your accounts receivable any time, from anywhere.

Collect receivables immediately

Revenue can be unpredictable, but staying on top of invoicing and receivables helps keep cash flow positive. Ways to collect money owed to your business faster:

• Invoice promptly and follow up overdue payments.
• Offer a convenient, secure online payment option on every invoice. B2Bpay can add a card payment link to your invoices.
• Reward early payment with discounts or incentives.
• Secure bookings by asking for a partial payment up front.
• Make deposits mandatory when you take a customer's order.

Extend your payables

The key is to bring cash in as quickly as possible while holding back on expenses for as long as possible. Easier said than done, so here are some useful tips:

1. Build strong, trusting relationships with suppliers who can offer flexible payment terms.
2. Negotiate and use your full terms. If a payment is due in 30 days, ask whether it can be 45, and do not pay early.
3. Pay electronically on the due date. Electronic funds transfer lets you pay on the last day, so you keep funds for as long as possible without late fees.
4. Streamline accounts payable and make payments digitally.
5. Ask for extensions early. Look ahead at upcoming bills and make a conservative call on whether you can pay. If not, contact the supplier straight away and explain the situation.

How B2Bpay helps your cash flow

B2Bpay lets you pay your invoices with the credit cards you already have, whether or not the biller accepts cards. You pay by Visa, Mastercard or American Express and the biller receives a bank transfer or BPAY payment. See paying suppliers who don't accept cards.

Pay your invoices through B2Bpay and you can:

• Boost cash flow with your card's interest-free period of up to 55 days. See how the 55 days work.
• Earn Qantas Points for your business. See earn Qantas Points.
• Earn your credit card's reward points on bills that used to come straight out of the bank.
• Earn full card points on ATO, insurance and telco bills, which many cards reward at a reduced rate when paid directly. See full points on ATO payments.
• Cut mundane admin and accounting tasks, so you can get back to what you do best: building the business.

Whether you want to tighten expenses or need more efficient ways to pay, B2Bpay helps you manage the constant movement of your business funds, and frees up cash for the extra opportunities that come with it.

Get started

Registering is easy and costs nothing to set up. Register now, or call our Sydney-based team on 1300 205 575. A platform fee applies to each payment; see pricing.