Better Credit
Here are some things to consider when you want to increase cash flow without creating debt.

Offering Credit Card Service instead of Net 30 terms.
There are strong benefits for you and your customers when you receive payment by credit card. This is why:

For the customer: The customer is supposed to pay the bill in Net 30, regardless of whether they pay you directly, or they pay their credit card company.

When they pay with their credit card bill on time, they establish good credit with a financial institution. If they pay you on time, they only establish credit with you. Their financial institution has the power to give them bigger lines of credit, loans for property and capital equipment, leases, etc.

All they get from your business is Net 30 terms with a limited line of credit. You may even want to offer a slight discount to persuade customers who are hesitant to switch over to paying with plastic.

For you: Accepting credit cards increases you cash flow without creating debt. It brings cash in quickly and easily in as little as 24 to 48 hours (Confirm with your merchant service provider). It eliminates the time and cost of accounts receivable maintenance, additional employees, collections, and credit issues.

It gives you strategic control over your cash flow. It offsets its own costs by allowing you to pay your bills so quickly that you can earn discounts on invoices from your vendors.

Ask your bank for help.
If you are like many typical small businesses, you may have terms with your biggest suppliers. You may also have lines of credit from different sources or credit cards that you use on a regular basis.

Since most banks would like to have all your business, why not talk to your bank's small business consultant about consolidating debt and lines of credit?

If your bank sees that you have many sources for credit and a clean record of making timely payments, they may offer you a consolidation loan or line of credit at a very attractive rate. Imagine consolidating credit card and loan debts that may be 15% or higher down to one payment per month at 8% or 9%.

As we mentioned earlier, paying your bills on time, and preferably using your bank's credit card, many vendors offer discounts on invoices if paid within 10 days, and over time, paying your balance each month demonstrates that you are credit worthy with an excellent payment record.

A good track record works wonders when you need a loan for property, or a lease for capital equipment.

Cash Flow Tips
Growing Fast? Having trouble collecting on time? Here are some helpful guidelines.

Nine reasons to lease
There are many reasons to lease, including improving cash flow, credit, and flexibility.