Stall Your Way to Better Cash Flow

Make this your cash flow mantra: "Take your time paying your bills while sending out invoices as soon as you can."

You might ask if paying late will affect your credit rating. The timing of when you pay your vendors has no impact on your credit score. Rather, you'll hurt yourself worst if you don't have available cash flow to pay taxes or use up all of your line of credit.

What about vendor relationships? That is the tricky part of the equation. But, "It's not personal, it's business." Let's say things fall apart in a business. Do you think vendors care? Not likely. They just want their invoices paid like you do.

Make it a habit to put off paying your bills. It's a good one to have. And it's not illegal to pay as late as possible. Also consider paying your rent, if you have one, at the end of the month or whatever time works best with your cash flow schedule. Here are other options for getting through cash flow problems:

• Create cash flow projection and cash flow statements. This is akin to a crystal ball and prepares you for large bills. If you have a CPA, bookkeeper or other finance expert, they can help you with this.
• Cut costs. Can you find a better deal for making phone calls? Maybe consider using the Internet for long distance calls. There are many communications options these days -- you're bound to find a better deal. You can always ask, too.
• Accept credit card payments. Sure, credit card companies add a charge, but what's a little charge when you get paid much faster?
• Investigate your lender. How is it doing? Can you renegotiate? Try a credit union or a private lender. Banks aren't the only solution.
• Review your vendor contracts. Maybe you can get a better deal or switch to another vendor.
• Barter. Does someone else need your service and you need theirs? Do an exchange.
• Partner with other businesses. Maybe another business can do something better and faster than you can and vice versa. Then you can provide customers with a little extra.
• Go bootstrapping. Operate on your business' working capital without taking in money from elsewhere.

What other ways can you improve your cash flow?