3 Unexpected Ways To Support Your Cash Flow

It’s not easy to operate a business without a healthy cash flow. You can be paper-rich and still unable to keep up with your operational costs if cash isn’t available. Sure, there are many ways to mediate this, and companies will use financial managers to achieve that. For example, offering quick invoices with incentives, following up on overdue payments, and trying to stretch their own bill payments can help. This is just one set of methods; there are many others.

However, sometimes you might find that due to a miscalculation or a difficult trading period, you need to rely on a few support structures to help you. Perhaps you just want to place your business in the most secure position it can be in, a good practice to emulate. But how do you get started with such a practice? It’s not always easy to tell. 

In this post, we’ll discuss some of the less obvious practices you may wish to use: 

Alternate Currencies

It might feel a little bit strange to consider, but thinking of options past your national currency could give a nice safety cushion. Trading with stablecoins for example, which is digital crypto backed by certain assets, can sometimes help against volatility. Stablecoins aren’t always completely volatile, so it’s a good place to put some capital aside if you trust it. Certain companies have decided that keeping a portion of your revenue as stablecoin through a service like Reap is a good way to enjoy the benefits of digital finance, but without having risky positions of investment in it.

A business can hold a reserve of this currency quite easily if it is done correctly, as it isn't completely tied to the local economy’s ups and downs.

Prepaid Partnerships

If you think about setting up a structured partnership with clients who buy from you often, you could incentivize them by giving a discount for bulk or guaranteed future purchases, but with a specific cash injection now. The client will then pay upfront for a set amount of future goods or services, as it gives them rate for their business later, and earns your business an immediate boost in cash flow.

It’s a clear win for everybody involved, which isn’t particularly common in business competition and trading life. However, if you have a reliable client and you need capital to cover costs or invest in new equipment, it can be a lifesaver. Don’t worry, the agreements are often structured very formally, making sure both parties have a clear path and the payment comes immediately. If done right. it makes for very loyal customers, too.

Unused Subscriptions & SaaS Credits

Everyone’s signed up for a Software as a Service (SaaS) tool they barely use, or maybe a number of services that were great for a project that ended. Any forgotten monthly payments can be an issue, like an enterprise account with an SEO tool you no longer use now you’re working with an agency.Take some time to checkl the automated payments going out the door, and you may have added a dam to your cash flow leaking.

With this advice, you’ll be better able to support your cash flow going forward.