For small to mid-sized business owners, cash flow is often the make-or-break factor that determines survival and success. It doesn’t matter how great your product is or how strong your sales are—if you don’t have enough cash on hand to cover payroll, rent, or suppliers, your business can quickly run into trouble.
The good news? There are simple, effective ways to improve your cash flow—some of which you may not have considered. This blog explores time-tested methods to increase liquidity and introduces one powerful solution that’s helped thousands of business owners unlock working capital quickly: invoice factoring.
1. Speed Up Invoicing and Collections
One of the easiest ways to improve cash flow is to invoice as soon as a product or service is delivered. Don’t wait until the end of the week—or worse, the end of the month. The faster your invoices go out, the sooner the money can come in.
In addition, follow up on late payments. Many businesses leave thousands of dollars on the table because they hesitate to chase overdue invoices. Setting up automated reminders or using accounting software with built-in alerts can help.
2. Negotiate Better Payment Terms with Vendors
Improving your cash flow isn’t just about collecting money faster—it’s also about slowing down how quickly money leaves your account. Negotiate extended payment terms with your vendors, if possible. For example, if you can move from Net 15 to Net 30 or Net 45, you’ll hold onto your cash longer, giving you more flexibility.
Also, explore discounts for early payments. While this might seem counterintuitive when trying to conserve cash, if you have enough working capital, taking a 2% discount for paying early might actually save you money in the long run.
3. Cut Unnecessary Expenses
Sometimes, improving cash flow means taking a hard look at your expenses. Are there subscriptions you no longer use? Services you could renegotiate? A leaner business often runs more efficiently—and with fewer cash headaches.
Create a monthly budget and stick to it. Monitor your burn rate (how quickly you’re spending money), and regularly review each line item for potential savings.
4. Build a Cash Flow Forecast
Many business owners manage cash reactively—scrambling to make ends meet when a crisis hits. Instead, be proactive. Build a 12-week cash flow forecast that shows expected inflows and outflows. This helps you anticipate shortages before they become emergencies and lets you make smart decisions, like delaying a purchase or securing outside funding.
Forecasting isn’t just for big companies. Even a simple spreadsheet can provide valuable insights for managing your cash wisely.
5. Use Invoice Factoring to Get Paid Faster
Even with the best planning, waiting 30, 60, or 90 days for customers to pay can strain your business. That’s where invoice factoring comes in.
What is Invoice Factoring? It’s a financing solution where your business sells its unpaid invoices to a factoring company (like American Receivable) in exchange for immediate cash. Instead of waiting weeks for your customer to pay, you get up to 95% of the invoice value within 24 hours. When the customer eventually pays, the remaining balance—minus a small fee—is returned to you.
Unlike loans, factoring doesn’t add debt to your balance sheet. Approval is based on your customers’ creditworthiness, not yours, making it an excellent solution for newer businesses or companies with less-than-perfect credit.
Why Business Owners Choose American Receivable
For over 45 years, American Receivable has been helping business owners improve their cash flow with fast, flexible, and transparent invoice factoring services. Whether you’re a startup or a seasoned operation, our team tailors factoring solutions that fit your unique cash flow needs.
Here’s what sets us apart:
- Same-Day Funding: Get paid fast—usually within 24 hours of submitting invoices.
- No Hidden Fees: Our pricing is straightforward and competitive.
- No Long-Term Contracts: Use factoring when you need it, with no pressure to commit long term.
- Superior Service: Every client gets direct access to decision-makers who understand your business.
Improve Your Cash Flow Today
If you’re tired of waiting on slow-paying customers or scrambling to meet payroll, it’s time to explore a smarter way to manage cash. Invoice factoring gives you access to your own money—faster—so you can focus on growing your business, not chasing payments.
Contact American Receivable today for a free consultation and see how we can help you unlock the cash trapped in your receivables.
Ready to improve your cash flow?
Let American Receivable show you how invoice factoring can keep your business moving forward.
Call 800-297-6652 or Click Here to Get a Free Quote
