Maximizing cash flow

Six classic methods for maximizing cash flow are:

1. Minimize accounts receivable days, or the time between billing and receipt of payment from customers.

2. Maximize accounts payable days, or the time between receipt of invoices and payment to suppliers and vendors.

3. Rent or lease assets and property when the monthly outlay is lower than outright purchase.

4. When you have debt, minimize the cost (interest) and maximize amortization of payments.

5. Raise prices on products and services whenever possible. Use incremental increases when you don't need it, rather than large increases all at once when you're desperate.

6. Scrutinize expenditures like your life depends on it (because your professional life does).