Cash flow problems are rarely solved by selling more, because more sales on the same payment terms means more money owed to you and more stock funded upfront. The changes that produce cash quickly are about timing rather than volume: when you invoice, when you get paid, when you pay, and what your money is sitting in.
The list below is ordered by how fast each one works.
Fix invoicing and collection first
Invoice the day work is done rather than at month end, which alone can pull payment forward by weeks. Put payment terms in writing, and follow up on day one of overdue rather than day thirty.
Track the average days customers take to pay, weekly. It moves before revenue does, which makes it the earliest warning you have. Most late payment is disorganisation rather than refusal, and prompt polite persistence fixes it.
Get money in earlier
Take deposits on work with material costs, so you are not lending customers your working capital. Stage payments on longer projects. Offer a small discount for early settlement only if the discount costs less than the finance you would otherwise need.
For new customers, ask for payment upfront until they have a record with you. Credit is something a customer earns rather than something you offer by default.
Pay later, lawfully and openly
Negotiate longer terms with suppliers rather than simply paying late, which damages the relationship and your credit standing. Many suppliers will agree if asked before you fall behind rather than after.
Time large purchases to your cash cycle instead of to convenience, and question every recurring payment: subscriptions nobody opens and services renewed from habit are quiet cash leaks.
Stop funding the wrong things
Slow-moving stock is cash sitting on a shelf. Count what actually turns and let that decide reorders, then clear what does not even at reduced margin, because recovering some cash beats none.
Lease rather than buy where the asset is not core, and match any finance to the need: short-term money for timing gaps, asset finance for equipment. Registration and compliance at the Companies and Intellectual Property Commission is what makes that finance available at all, and free financial management training is offered through the Small Enterprise Development and Finance Agency.
Frequently asked questions
Why do profitable businesses run out of cash?
Because profit is earned on paper while cash arrives later. Money owed does not pay wages.
What is the fastest cash improvement?
Invoicing the day work is done and chasing from the first day overdue. Both cost nothing and pull payment forward by weeks.
Should I offer early settlement discounts?
Only if the discount costs less than the finance you would otherwise need to cover the gap.
How do I handle new customers?
Payment upfront until they have a payment record with you. Credit should be earned rather than offered by default.
What number should I track weekly?
The average days customers take to pay. It moves before revenue and gives you weeks of warning.
Further reading
Originally published in January 2018. Updated September 2026 into practical guidance on improving cash flow.
