One of the major challenges that many businesses face are cash flow problems. It starts can start very simply by suppliers invoices being due, and customers are delaying payment. We initially try to solve this issue by dipping into our savings (whatever that is left), and use that to pay suppliers. At the same time, write nice letters to ask customers to pay promptly. Does that sound familiar to you?

Here are 5 ways to improve business cash flow.

1. Use barter to pay for all businesses expenses that can be bartered.
What this does is that it reduces the possibility of your business being caught in the crunch, and not having that extra spare cash on hand to pay off your suppliers or employees. Every dollar counts, so even something as small as web hosting (which normally costs about $150 a year), may not seem like much, but when it all adds up, you will be surprised how much you had saved

2. Don't give discounts, reward your customers with gifts
Many business owners tend to give discounts to reward regular customers for patronizing their business. It is easy to give discounts, but it is more cash-effective not to do so. Some business owners have used barter to buy gifts and tokens, or created souveniers (and not having to pay cash). A very smart move I must say.

3. Send out invoices on time
Many small business owners do not send out their invoices on time. In fact many of us are guilty of this. The main problem we have is that a proper accounting system is not in place, and not enough manpower to oversee this function. Outsourcing this function would reduce the delay in ensuring a steady stream of cash income. And of course if this is paid by using barter, it makes it most idea.

4. Bartering with Suppliers
This may sound far fetched, but it is possible. Recommend your suppliers or service providers to barter their products with you. This would reduce your cost of goods sold. This inturn increases your profitability. Restaurants barter with Wine distributors is one example

5. Alternative Financing
Ozone barter provides small businesses with an interest free barter overdraft. This allows them to buy what their business needs - without having to use their cash reserves to pay for products and services. This is indeed a great form of savings for any business owner