If cash flow is causing problems in your business, you certainly aren’t alone. COVID-19 has created additional obstacles on top of the already-delicate balance by causing widespread project delays and hiccups in funding approval. Good money management has never been more important. Here are a few ways you can begin solving cash flow problems in your general contracting business, and HFS Financial is ready to help!
Money Management Practices that Increase Cash Flow
Establishing good practices is crucial in making that cash flow. Creating and implementing a business budget is the obvious first step. As Peter Drucker once said, “What gets measured gets managed.” Accounting reports and financial statements will give you a bird’s eye view into your business, both past and present. A cash flow forecast can help predict future issues that will arise. None of these reports need to be complex. Many software options exist that do the hard work for you and are worth investing in.
Financing Large Purchases for Your Business
Financing bigger purchases, instead of paying for them with cash, has benefits on both sides of the coin. First, it frees up that cash for things like payroll and items that don’t have a minimum payment option. Second, it builds business credit in the event you will need a small business loan for, you guessed it, additional cash.
Negotiating with Suppliers
This may seem like an area that lacks much wiggle room, but ensuring you are getting the best pricing on your materials can make a big impact. In order for this change to happen, you may need to negotiate with your vendors for better pricing, or possibly buy supplies in bulk to secure a better price. Sometimes, simply letting vendors know you’re going to shop around for better pricing will give you the results you’re looking for.
Invoicing Promptly and Accurately
Being slow to invoice, or invoicing sporadically, only guarantees that the payment will follow suit. Good cash flow requires a good system. Automated invoicing guarantees prompt delivery to clients, and will cut down on costly invoice mistakes. A good invoicing system provides better clarity and insight into the financial flow of your company.
Using HFS Financial to Help Solve Cash Flow Problems
Offering HFS Financial’s financing programs to your customers can be a make-or-break deal in securing additional clients. At HFS Financial, we connect your client with loans so that they can afford to hire you as their contractor. Our promise to your clients is “You Dream It, We Finance It.” Don’t lose the sale to a competitor who offers financing options. Another added bonus is that HFS Financial doesn’t do staged payments! We offer an HFS Financial widget that appears right on your website and directs customers to our application. It’s quick, easy, and can be a great way to begin solving cash flow problems in your contracting business. Give us a call today 1-800-254-9560 and let us help!