CASH FLOW MANAGEMENT.

Cash flow is the process, in which a business uses cash to generate goods or services for sales to its customers, collects the cash from the sales and then complete the cycle all over again. Cash flow can be seen in two forms; Cash inflows and cash outflows
Cash inflows describe the movement of money into the business. This includes cash collected from sales to customers, collection on accounts receivable and the proceeds of a bank loan or any other types of business loans.
Cash outflows describe the movement of money out of the business. This includes payments for business related expenses such as salaries and wages, utility bills, purchase of property or equipments and loan repayments.
In order for a business to consistently meet its financial obligations to customers, creditors, employees, investors, suppliers, it will need to properly manage its cash flow. Here are six ways for a business to save costs and increase its cash flow
Financial Management- Offer Cash Discounts
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A business can offer cash discounts to customers willing to pay cash immediately for goods or those who are willing to make prepayment for goods. This will significantly increase its cash flow.
Financial Planning- Debt Factoring

This is essentially the sale of business invoice to a third party who goes ahead to process the invoice while business receives cash from it (factoring business). Factoring allows a business to have access to cash upfront rather than wait for an expected invoice to be paid.
Lease Instead of Outright Purchasing

As a business grows, it may need to purchase new equipments and machinery such as cars and computers. Instead of an outright purchase, the business can arrange for a finance lease with a financial institution. This will enable the business free up its cash for other business activities.
Financial Planning- Embrace Outsourcing
Outsourcing involves ceding non-core business operations and activities to other businesses that are specifically set up for such services. Outsourcing non-core activities will help the business save costs in areas of salaries, acquisition of office furniture and training costs helping to boost its cash flow.
Financial Management- Share Resources
The business can significantly increase its cash flow by sharing its resources (and the costs) with another business. It can share office space, secretaries, human resource personnel, and accountants amongst others.
Negotiate Discounts with Suppliers
Find suppliers that are willing to provide the business with significant discounts in exchange for bulk purchases and a long term partnership. This will go a long way in boosting the cash flow of the business.