1. Stay in control through forecasting and budgeting. Fix costs where you can, take advantage of reductions for paying by direct debit and avoid seasonal variations and late-payment charges.
2. Set clear payment expectations for the company’s customers to ensure prompt payment and to reduce cash-flow issues, and don’t be afraid to follow-up if terms are broken.
3. Update your utility providers with meter readings on a regular basis to ensure you pay accurate bills and keep talking to your suppliers so you can agree short-term measures to help you through cash-flow struggles.
4. Review contract renewal terms when the notification is sent to you 120 days prior to the date of renewal. If you have questions, contact your supplier.
5. Invest in energy efficiency measures to reduce ongoing energy consumption. Simple changes in behaviour can result in a 10% saving that will release more cash to improve your working capital position.
