{"id":353,"date":"2019-03-01T09:09:33","date_gmt":"2019-03-01T09:09:33","guid":{"rendered":"https:\/\/blog3.indifi.com\/?p=353"},"modified":"2026-05-08T15:59:13","modified_gmt":"2026-05-08T15:59:13","slug":"manage-cash-flow-small-business-owner","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/manage-cash-flow-small-business-owner\/","title":{"rendered":"Ways To Manage Your Cash Flow As A Small Business Owner"},"content":{"rendered":"<div class=\"wp-block-image size-medium wp-image-526\">\n<figure class=\"alignleft\"><img loading=\"lazy\" decoding=\"async\" width=\"450\" height=\"300\" src=\"https:\/\/blog3.indifi.com\/wp-content\/uploads\/2019\/03\/All-That-You-Need-to-Know-To-Successfully-Manage-your-Cash-Flow-as-a-Small-Business-Owner-450x300.jpeg\" alt=\"All That You Need to Know To Successfully Manage your Cash Flow as a Small Business Owner\" class=\"wp-image-526\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/03\/All-That-You-Need-to-Know-To-Successfully-Manage-your-Cash-Flow-as-a-Small-Business-Owner-450x300.jpeg 450w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/03\/All-That-You-Need-to-Know-To-Successfully-Manage-your-Cash-Flow-as-a-Small-Business-Owner-768x512.jpeg 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/03\/All-That-You-Need-to-Know-To-Successfully-Manage-your-Cash-Flow-as-a-Small-Business-Owner.jpeg 800w\" sizes=\"auto, (max-width: 450px) 100vw, 450px\" \/><figcaption class=\"wp-element-caption\"><em>All That You Need to Know To Successfully Manage your Cash Flow as a Small Business Owner<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">When it comes to the financial health of small businesses, \u201cCash is King.\u201d Irrespective of whether your business is growing or struggling to make ends meet, the cash flow plays a critical role in helping your business survive and thrive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019ve used up a majority of your working capital, then you could face a cash crunch. This, in turn, delays your payment to suppliers, stocking inventory and at times, even paying employees. The time delay between your payments and when your customers pay you is what causes a problem with cash flow. This is why, it\u2019s essential that you maintain adequate working capital to ensure that your business continues to operate efficiently, at all times.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-vivid-green-cyan-background-color has-background wp-element-button\" href=\"https:\/\/www.indifi.com\/merchant-advance-capital-against-pos-machine\">Apply For Merchant Advance Loans<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Before we delve into strategies and tips to boost cash flow, let\u2019s first take a look at the basics of cash flow.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/manage-cash-flow-small-business-owner\/#Important_Terms_To_Know\" >Important Terms To Know<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/manage-cash-flow-small-business-owner\/#Strategies_to_Boost_Cash_Flow_Without_Hurting_Growth\" >Strategies to Boost Cash Flow Without Hurting Growth<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/manage-cash-flow-small-business-owner\/#1_You_Cant_Control_What_You_Cannot_Measure\" >1. You Can\u2019t Control What You Cannot Measure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/manage-cash-flow-small-business-owner\/#2_Avail_A_Line_Of_Credit_Before_You_Face_Cash_Flow_Problems\" >2. Avail A Line Of Credit Before You Face Cash Flow Problems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/manage-cash-flow-small-business-owner\/#3_Consider_Business_Loans_for_Long-term_Financing\" >3. Consider Business Loans for Long-term Financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/manage-cash-flow-small-business-owner\/#4_Speed_Up_Receivables_By_Offering_Incentives\" >4. Speed Up Receivables By Offering Incentives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/manage-cash-flow-small-business-owner\/#5_Liquidate_Assets_that_You_No_Longer_Use\" >5. Liquidate Assets that You No Longer Use<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/manage-cash-flow-small-business-owner\/#Focus_On_The_Cash_Flow_And_Not_The_Profits\" >Focus On The Cash Flow And Not The Profits<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_Terms_To_Know\"><\/span>Important Terms To Know<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf Cash Flow\u200a\u2014\u200aThe movement of funds into and out of your business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf Positive Cash Flow\u200a\u2014\u200aThis happens when the funds entering your business (customer payments, receivable, etc.) is more than outgoing funds (employee salaries, monthly payables, monthly expenses, supplier payments, etc.)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf Negative Cash Flow\u200a\u2014\u200aThis happens when your outgoing funds are higher than the incoming funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Negative cash flow generally spells trouble for your business. While cutting down expenses is a quick fix, it can do more harm than good. When you reduce essential expenses, you are limiting your business, thereby preventing further growth.<\/p>\n\n\n\n<p class=\"has-vivid-green-cyan-color has-text-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/6-reasons-merchant-cash-advance-ideal-finance-smes\/\">6 Reasons Why Merchant Cash Advances Are An Ideal Finance Option For SMEs In India <\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strategies_to_Boost_Cash_Flow_Without_Hurting_Growth\"><\/span>Strategies to Boost Cash Flow Without Hurting Growth<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_You_Cant_Control_What_You_Cannot_Measure\"><\/span>1. You Can\u2019t Control What You Cannot Measure<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">To find out whether your cash flow is positive or negative, you need to have the require metrics at hand. Find out answers to the following questions:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf How much inventory should my business hold?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf What\u2019s the number of overdue invoices and how much cash is being held up?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25cf How long does it take between paying suppliers and getting the cash from customers?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use efficient accounting software to help you figure out the accurate inflows and outflows in your business, over a period of time.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Avail_A_Line_Of_Credit_Before_You_Face_Cash_Flow_Problems\"><\/span>2. Avail A Line Of Credit Before You Face Cash Flow Problems<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">Short term business financing like a line of credit is a great way to bridge the gap between your payables and receivables. Try to get a business <a href=\"https:\/\/www.indifi.com\/unsecured-line-of-credit-loans-india\" target=\"_blank\" rel=\"noopener noreferrer\">line of credit from digital lending platforms like Indifi<\/a> as a protection against your cash flow problems. When you avail a line of credit before your cash flow turns negative, you may even be able to avail discounts on the interest.<\/p>\n\n\n\n<p class=\"has-vivid-green-cyan-color has-text-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/business-benefits-from-merchant-cash-advance\/\">Top 5 Reasons Why Your Business Benefits From A Merchant Cash Advance <\/a><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Consider_Business_Loans_for_Long-term_Financing\"><\/span>3. Consider Business Loans for Long-term Financing<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">If you have a big-ticket expense coming up, like purchasing new equipment, relocating to a new office, instead of dipping into your working capital, consider availing long-term financing like a <a href=\"https:\/\/www.indifi.com\/term-business-loans-online-india\" target=\"_blank\" rel=\"noopener noreferrer\">business loan<\/a>. This way, your working capital doesn\u2019t get strapped, and you can carry out regular operations without facing a cash crunch.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Speed_Up_Receivables_By_Offering_Incentives\"><\/span>4. Speed Up Receivables By Offering Incentives<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">One of the main reasons why most businesses face a cash flow problem is because customers wait until the end of the payment cycle (or even beyond that) to make payments. To speed up payments for your receivables, you can offer incentives to customers like a cash discount on bill payments made within 7 days of the invoice date and so on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This way, your customers are likely to settle their bills quickly, which in turn increases your incoming cash flow.<\/p>\n\n\n\n<p class=\"has-vivid-green-cyan-color has-text-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/top-5-ways-business-benefit-global-holiday-season\/\">Top 5 Ways Small Businesses Can Reap Benefits Of Global Holiday Seasons <\/a><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Liquidate_Assets_that_You_No_Longer_Use\"><\/span>5. Liquidate Assets that You No Longer Use<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\">Do you have equipment that you no longer use? Or do you have inventory lying around that is in danger of becoming obsolete? You can try selling your idle, non-working or obsolete equipment and inventory for some quick cash.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Remember that selling unused equipment will impact your taxation. Selling at the book value gets you a tax gain while selling lower than the book value will cause a tax loss.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Focus_On_The_Cash_Flow_And_Not_The_Profits\"><\/span>Focus On The Cash Flow And Not The Profits<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As a small business owner, remember that if your cash flow is in order, your profits automatically fall into place. Hence, it\u2019s critical that you stay on top of your cash flow to boost your success. Don\u2019t let a few small cash flow mistakes; pull down all your efforts. Use these smart moves listed here, to bring back your business on track.<\/p>\n\n\n\n<p class=\"has-vivid-green-cyan-color has-text-color wp-block-paragraph\"><a href=\"https:\/\/www.indifi.com\/merchant-advance-capital-against-pos-machine\">Apply For Merchant Cash Advance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When it comes to the financial health of small businesses, \u201cCash is King.\u201d Irrespective of whether your business is growing or struggling to make ends meet, the cash flow plays a critical role in helping your business survive and thrive. If you\u2019ve used up a majority of your working capital, then you could face a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141],"tags":[26,90,132,133],"class_list":["post-353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-finance","tag-line-of-credit","tag-long-term-financing","tag-manage-cash-flow"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=353"}],"version-history":[{"count":15,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/353\/revisions"}],"predecessor-version":[{"id":15102,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/353\/revisions\/15102"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/526"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}