99 Ways to Increase Cash

Are you a director, investor, lender, service provider, officer or a manager at a company where cash is tight? Have management review Mike’s list of 99 ways to increase cash.

ACCOUNTS RECEIVABLE


Make collection calls every day.
Send invoices for all sales.
Send invoices early, before shipping the product.
Send invoices via electronic mail.
Get deposits from customers.
Use a lock box.
Better yet, have customers wire transfer payment directly to your bank.
Change your terms from net 30 to due upon receipt.
Make distributors prepay their initial order(s).
Understand how your customers process bills and write checks.
Sell COD.
Increase your prices.
Sell products that work.
Charge interest on past due receivables.
License your technology to larger companies.
Have a no nonsense program for going after slow paying customers.
Finance receivables with a bank line of credit.
Finance receivables with a factor.
Finance specific invoices with a factor.
Monitor incoming wire transfers.
If you have always requested a letter of credit from a customer, and the customer suddenly is unable to provide the letter of credit, refuse to ship until the letter of credit is in place.
Make the sales VP explain why the invoice is older than your stated credit terms.

INVENTORY

Use outside subcontractors to manufacture and assemble products.
Take inventory on consignment.
Arrange floor plan financing.
Understand the variances in your inventory accounts.
Eliminate the candy stores.
Sell your obsolete inventories at any price. Then, use the extra space productively.
Stop using the "full bin" method to order raw materials.
Order only the parts you need, and have them delivered JIT.

EQUIPMENT

Buy used equipment.
Lease equipment from an independent leasing company.
Set up an officer owned leasing company.

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