How to Manage Business Expenses When You’re Cash Strapped?

How to Manage Business Expenses When You’re Cash Strapped

Whether you are struggling to pay the bills or aren’t getting as many orders as normal, being cash-strapped means you may need to start hoarding cash. The good news is there are ways to manage your cash flow more carefully. Implementing a few of these can make a huge difference in your cash flow, and they could be the difference in whether or not you remain profitable.

How to Manage Business Expenses When You’re Cash Strapped?

Make Careful Purchase Decisions

No matter your industry, you likely purchase a lot even for your small business. Negotiating lower prices and purchasing smaller quantities can improve cash flow, as you won’t be spending as much at one time. Still, it might feel more cost-effective to purchase in bulk because the cost per unit is cheaper when you purchase in bulk.

How to Manage Business Expenses When You’re Cash Strapped - Make Careful Purchase Decisions

Even if making smaller purchases, you might want to get quotes from a number of suppliers before choosing the right one. Avoid signing any contracts until you have gotten a number of quotes. Your current vendor may try to give you a better deal if they know you are shopping around.

Implement Fleet Management Software

Your fleet is one of your organization’s biggest expenses, so it makes sense to look for areas you can cut back on. One option is to implement a multi-purpose compliance solution called tachograph management. Having tachograph analysis software available allows you to keep track of everything from downloads to tacho status. Staying compliant can prevent hefty fees that might arise from breaking the regulations in your area.

Save on Credit Card Processing

Save on Credit Card Processing

If your company accepts credit cards, you might be paying hefty processing fees, which can eat up cash you could have used. Many banks and credit card companies have a complicated listing of charges for purchase types, and it can be hard to compare prices. If you can get your own processing equipment and get multiple bids, you can save money. Still, it can take time to obtain these bids, so you might ask around your network to see if anyone else has done comparison shopping.

Don’t Purchase Equipment You Don’t Need

It is easy to commit to expensive equipment when the cash is flowing in quickly. However, if you are struggling financially, it might be time to take a close look at what you own, such as things you still owe money on.

Selling the item can be a good solution, even if you have to sell it for less than you owe and need to pay to make up the loan difference. It still saves you money over time. You can rent the item if you use it only every now and then. Consider leased items as well, as you may be paying to lease items you don’t use that much.

Consider asking them to cancel the lease or renegotiate your payments. If you are in a contract, you may need to work with a lawyer to help you get out of the lease contract. But they can explain to the leasing organization that you can no longer afford to make the payment