At Genie Lending we often provide alternative finance to shops and pubs, to improve cash flow and keep them running day to day. Here are some general tips specific to the industry which could help you get a grip on cash flow.

Don’t overstock

Keep a thorough record of everything you sell every week and every month. Do you have anything leftover which you’re struggling to shift? There’s a fine line between overstocking and ordering too little, and you’ll have to experiment to get it right. Ultimately however, you’ll probably save more money by ordering too less – don’t overstock your store room. This could free up some much needed cash rather than it sitting unwanted in the back!

Increase prices

If you’re not raising enough revenue, it may be time for a price hike. Obviously you don’t want to send your customers elsewhere, so it’s important to keep an eye on the competition and check what similar businesses are charging. Even raising prices by as little as 10p could improve your sales with little inconvenience to your loyal customers.

Shop around

There’s always a better deal to be had if you take the time to shop around for your goods. Whatever you need to buy for the business, see if you can find it cheaper elsewhere before choosing the most convenient supplier.

Merchant cash advance

If you take card payments, then your business will be eligible for a merchant cash advance, which can free up some of the income from those payments. It’s a type of short term finance which uses debit and credit card receipts as a form of security. The amount you can borrow will depend on your average monthly turnover.

Reduce labour costs

A good place to start when trying to reduce outgoings is with labour costs. Try and cut hours where you can, or work more hours yourself so you don’t need to pay as many staff.

Struggling with your cash flow? Speak to one of our experts today to see how we can help.

The post How Shops and Pubs Can Improve Their Cash Flow appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Re-evaluate your invoice terms

Bring all of your incoming and outgoing invoices together to identify the problem. If customer payments don’t have to be made for 30 days, yet your supplier invoices need to be paid is 21 days, then you have nine days where you have to stay afloat on nothing. See if you can negotiate longer payment terms with your suppliers and give an incentive to clients who pay invoices early. You could go one step further and create penalties for late payments. This could bridge the gap and solve minor issues.

Increase your prices

An easy way to boost your revenue is to carry out a small price hike. If you have to invest in stock on a regular basis, a small increase can seriously improve cash flow. Of course customers are never happy with paying more, so only do this if you think the business can fend off competitors who may undercut you.

Use the business credit card

Pay for more products and services with a credit card, and you’ll get an extra 30 days to pay it off. If you’re waiting for a big payment to be transferred then this is a simple plan.

Hire an accountant

If you don’t already use the services of an accountant, now is the time for a positive investment. As financial experts they will be able to analyse cash flow and give advice for a better system which works for the business.

Apply for Finance

If you need a bigger solution to bridge an ever growing gap in cash flow, then you may need some extra help. A business loan might not be the answer, but there are a range of new ways to borrow which can instantly reduce the cash flow strain. Invoice finance and merchant cash advance solutions are perfect for helping businesses to keep running without getting into unmanageable debt.

Worried about cash flow? Talk to one of our financial advisors today.

The post How to Improve Cash Flow appeared first on Genie Lending: Business Loan Alternative Finance Specialists.