For most small businesses cash flows are always seen as totally not controllable. If they are dealing with large customers then the customers get to decide the cash flows.
Where there are small customers however you can always improve the cash flow by making the right offers. Here are some possibilities.
1. Cash advance
If you are in a made to order business,to cover the purchases before hand, you can ask a small cash advance. You can also plan for milestone payments as you achieve a clear percentage of the total work or stage payments. May be even offer an inspection by the customer before release of payment. Most reasonable customers will accept this request provided you give competitive price. This tactic will be particularly good when there is potential repeat business.
2.Vendor Financing
When you are an order based business, then get vendor financing for your raw material supplies. If your customer is reputable, then the customer's order can become the basis for order financing based on your past track record.
3. Working capital loan
If your customers are walk in cash paying customers, then you can get cash flow based financing. This not fully exploited by most small businesses. They think they can get it from banks only. Large number of financing cos have come up to handle this need. Try these and walk away from deals which are not workable for you. You can shop around and get a deal which you can work with
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