"These findings indicate that small businesses have similar goals as their large-market counterparts-efficiency, integration and information handling-in their cash flow management," says David Cramer, senior vice president, commercial solutions, at Visa USA.
Sluggish cash flow and an inability to accurately estimate the timing of payables and receivables on a consistent basis were cited as major concerns in the survey, and improving efficiency in receiving and collecting payments was identified as a top priority.
One strategy that has helped Farley's company maximize its cash flow is invoicing and billing every day rather than waiting until the end of the month. Now on its fourth generation of computer systems, the company has consistently improved its ability to process that paperwork over the years, Farley says.
That kind of expedited approach to billing could help improve cash flow at just about any type of business, but Farley also employs some strategies unique to his industry and location. One is designed to blunt the impact of uncollectible debt, a persistent obstacle to healthy cash flow for many businesses.
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