4 Ways to Give Your Small Business a Cash Infusion

Remaining profitable is the goal of any business. However, your cash flow is essential for managing day-to-day operations. It's what allows you to make payroll each week, upgrade software and hardware, and make other purchases that keep your business running smooth. Your cash flow may even affect your ability to get financing for business expansion. Whether you're concerned about how to improve your lawn mowing services or expand into other areas of lawn care, you might need a cash infusion. Here are five ways to get the funds you need to provide a cushion and breathe a little easier.

Manage Receivables and Payables Intelligently

AP and AR are your main accounts for recording revenue and paying your bills. Try to avoid financing receivables whenever possible and work with vendors on a cash basis and a more streamlined pay schedule. If you're the sort of business owner who takes pride in paying every bill right on time, you may actually be doing your business more harm than good. Certainly, it's commendable to pay your bills in a timely manner, but a payment manager or controller can more efficiently handle payable accounts without affecting your standing with vendors, making you less cash poor from month to month.

Upgrade Equipment and Technology

You may think that purchasing equipment and technology is an extravagance, but the right advancements can actually save you money. Are you constantly having to pay for new software because yours is severely out of date and obsolete? Cloud-based services like infrastructure, apps, and off-site storage are less expensive. Advanced technology can help you serve your customers better, streamline how you do business, track inventory, and perform all sorts of other money- and resource-saving functions.

Do you have a larger commercial space than you need because you own or lease and house your own equipment? Renting equipment that you use in a case-by-case basis means fewer storage needs on-site, and you don't have to pay to maintain the equipment. Waiting until equipment breaks before you buy a replacement or paying for constant repairs affects your cash flow and productivity.

Reduce or Eliminate Your Debt

Being debt-free is a goal for business owners and individuals alike. If you have a high-interest small business loan but a good re-payment history, banks will be happier to purchase your old loan and give you one with lower interest and smaller payment instead. You can use the extra funds to pay down lines of credit and business accounts. This has an added benefit of improving your credit score. You can also check into whether it's better to buy or lease some equipment.

Look into Grants & Tax Incentives

Many localities offer grants for local business development, especially for certain types of businesses like those using green technology or that are owned by veterans, minorities, and those with disabilities. These are also available through the Small Business Association and federal or state governments. Grants provide you with business funding, but they don't need to be repaid. You can also check into crowdfunding solutions such as Kickstarter. In an effort to promote business upgrades and expansions, there are also a number of tax incentives and credits available you can check into as well. These will lower your tax liabilities and put more cash in your pocket.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.