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How to optimize a company’s cash flow?


Jan 21, 2023
company's cash flow

Optimizing its cash flow is a major challenge for any company regardless of its size (VSE / SME / SMI / ETI). Moreover, poor cash management puts the financial health of the company in danger and leads to certain bankruptcy. This is why good cash management is a necessity. But how to optimize a company’s cash flow? Via this article,  Quai des entrepreneurs invites you to discover a list of “good practices” that could help you optimize your cash flow. Stay tuned

Key tips to optimize your company’s cash flow:

To ensure the continuity and growth of your business, you must manage your cash flow well. Here are our tips to optimize your cash flow:

Reduce trade receivables

Any company must control its trade receivables to ensure its continuity and profitability. Allowing trade receivables to accumulate endangers your cash flow and harms the financial health of your business. So, if you are faced with too high customer receivables, do not hesitate to call on a collection company such as Overland , Cortex and many others to recover your unpaid invoices. Collecting your receivables allows you to optimize your cash flow and avoid unfavorable situations that can lead your business to certain bankruptcy.

Reduce expenses

Every entrepreneur should know that the first thing to do to optimize their cash flow is to reduce capital expenditure.  Whether it’s rent or office maintenance or just supplies, always try to control your expenses to optimize your cash flow and ensure the survival of your business .

Optimize payment terms for your suppliers

Negotiating payment terms for your invoices with your suppliers is a good practice that could help you optimize your cash flow. You can request an extension of payment terms for your purchases from your suppliers.

Monitor your cash flow monthly

Monthly monitoring of your cash flow will allow you to avoid unpleasant surprises and anticipate risks.  In the event of negative cash flow, urgent and rapid solutions should be found to avoid bankruptcy. However, consider using technology to keep track of your cash flow. Managing cash on paper is a long, imprecise and time-consuming process. This is why companies, regardless of their size, prefer to use Excel to manage their cash flow well.

Increase your capital

The increase in your capital allows you to improve your financial situation and therefore optimize your cash flow. This capital increase can be done using several methods: finding other customers, varying your activity, maximizing the number of orders.


Finally, to properly optimize your company’s cash flow, you must take into consideration the list of tips mentioned in this article. And always keep in mind that good cash management is the key to the success of a

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