1. Business banking
  2. Business help
  3. Financial planning
  4. Cashflow
  5. Managing your cashflow

Managing your cashflow.

Managing your cashflow can be challenging at times. In this video, Tim Pezzack - a Lloyds TSB Regional Manager for Business Development - looks at three areas that could be crucial in helping you manage your cashflow when it's under pressure.

1. A clearly defined credit policy.

  • Make sure payment dates are always clear to your customers.
  • Consider incentivising them to pay on time and imposing charges when they don't.

2. Good cash management.

  • An efficient invoicing and payment process is essential.
  • Invoice straightaway and chase late payments promptly.
  • Could you negotiate longer payment terms with your suppliers?

3. Effective spending controls.

  • Review your sales' costs and stockholding - cash could be tied up in slow-moving or unprofitable lines.
  • Review costs such as marketing, staffing and banking - are there opportunities for savings?
  • Measure the return on investment in your marketing spend.

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