Pitney Bowes Bank

Six steps to better cash flow

Your business needs money to survive, so paying attention to techniques you can employ to improve cash flow is critical to your overall success.

These small changes can make a real difference to your business's cash flow and bottom line.

Improving your cash flow

One of the biggest challenges during the first few years of a business is achieving and maintaining positive cash flow. Cash is the lifeblood of your company. Without it, your business won't have the funds to pay suppliers, employees or fund marketing initiatives.

Remember the golden rule: cash flow is king

  1. Speed up receivables

    If you sell products or services on invoice, getting paid quickly is in your best interest.

    Give your customers an incentive to pay sooner than 30 days – which is the typical payment period. Try to collect payment quickly by making it attractive for customers by offering a small discount (1% or 2%) deducted from the amount due if they pay within ten days of the invoice date.

    And when the check arrives, be sure to deposit it on the day you receive it.

  2. Make invoicing a top priority

    Same-day or next-day invoicing is the best practice. Set aside time every business day for billing. Consider emailing invoices as a supplement to regular mail. Chase up habitually late-paying customers regularly to ask them for payment.

  3. Open a merchant payment account

    Receive payment quickly by letting customers pay by credit or debit card. This allows you to receive next-day value for your sales and services without the need to handle checks and make deposits.

  4. Use your business credit card

    Consider using your business credit card to pay suppliers and make purchases. Learn about your card's grace period, and take advantage of it — you may have up to 25 days after receiving your statement to pay without incurring interest charges. Some cards also come with cash-back features.

  5. Put your cash to use

    If you buy goods on a just-in-time basis and find yourself with extra cash, put it to use by investing in a short-term instrument such as a high-interest savings account for business or paying down your line of credit.

    Bonus Tip: A high-interest savings account for business allows you to earn a competitive interest rate on your cash on hand while ensuring the funds are accessible whenever you need them.

  6. Invest in technology

    The latest bookkeeping software or invoice management services should help you keep up with receivables and speed up customer payments. Often a small investment in technology can help you to reap tremendous cash flow advantages.


Pitney Bowes Bank understands the unique financial challenges of small- to mid-sized businesses. We provide real-world financial solutions that complement your existing bank relationships and are focused on your long-term objectives.

Learn more today!
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Banking products and services are provided by The Pitney Bowes Bank, Inc., Member FDIC. Pitney Bowes, Pitney Bowes Bank, and the Corporate logo are trademarks of Pitney Bowes Inc. or a subsidiary. All other trademarks are the property of their respective owners.