If you have concerns about cash flow as we start to emerge, somewhat slower than expected, from the disruptive effects of COVID, you may like to consider the following ideas to bolster cash flow.
- If you have stock gathering dust in your storeroom offer it to customers at a discounted price – set an initial price reduction to cost – converting these items to cash makes sense. It is also a win-win strategy: you free up space and add to cashflow, and your customers will perceive that they are getting a bargain.
- If stock items are perishable, food for example, set up distribution to food banks and relevant charities and make sure that local press and radio stations are made aware of your generosity – this may not create cashflow, but it will provide free publicity.
- Can you sub-let office or factory space for storage?
- Do you have any redundant plant or IT equipment that you could sell online – eBay etc.
- Keep your accounts up to date. If you have made losses, you may be able to carry losses back in time and recover tax paid in previous years.
You can also achieve the same benefits by reducing expenditure.
And MJB Avanti can help. Call 08000 388799 if you want to brainstorm your options for increasing cash resources or reducing borrowings.