Cash flow.

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The one phrase that can turn a perfectly normal business owner into someone who suddenly forgets how to breathe. But don't worry! Here are practical, finance-friendly, accountant-approved ways to increase cash flow in your business—without the jargon overload.

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1. Improve Your Invoicing Game (Because Cash Flow Starts With Billing)

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If you’re still sending invoices manually, relying on PDFs, or waiting for clients to “get around to it”, you’re leaving money on the table.

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Quick wins:

• Automate invoicing with platforms like Xero.

• Send invoices as soon as work is completed.

• Add payment links (Stripe, GoCardless, PayPal).

• Offer small early-settlement discounts if it encourages faster payment.

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Pro tip: Set clear payment terms upfront. “Payment on receipt” is stronger than “30 days because we’ve always done it that way”.

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2. Tighten Your Credit Control (Politely but firmly)

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Most UK businesses struggle not because they lack sales, but because they give interest-free loans to slow-paying customers.

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Best practices:

• Send automated reminders at 3, 7, 14 and 30 days overdue.

• Call overdue accounts early—don’t wait until month-end.

• Introduce late payment interest (allowed under UK law).

• Don’t fear pausing work for chronic late-payers.

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Consistency beats confrontation.

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3. Streamline Your Expenses (Yes, audit your subscriptions)

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Expenses creep up quietly. One minute you're paying £7.99/month for an app you “might use”, and suddenly you're burning £300 a month on tools no one remembers signing up for.

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Ways to fix it:

• Review all subscriptions quarterly.

• Remove duplicated or unused software.

• Renegotiate supplier deals annually.

• Use real-time visibility tools through Xero to track spend categories.

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Cutting £500 a month in waste is the same as increasing revenue—except easier.

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4. Shift to Recurring Revenue Where Possible

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Predictable income = predictable cash flow.

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Can you convert one-off work into ongoing monthly support?

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Examples:

• Maintenance plans

• Retainer packages

• Monthly advisory services

• Subscription products

• Membership access

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Even modest recurring revenue stabilises your cash flow dramatically.

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5. Increase Prices (Smartly and Strategically)

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If your prices haven't changed in more than 12–18 months, you're likely undercharging.

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How to do this without losing clients:

• Add value before increasing price.

• Position it as aligning with increased costs and improved service.

• Offer grandfathered rates for loyal clients.

• Communicate clearly and early.

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A 5–10% price update can transform your cash flow overnight.

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6. Improve Your Inventory Management

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For product-based businesses, cash is often trapped in shelves.

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To improve liquidity:

• Reduce slow-moving stock.

• Use demand forecasting rather than gut feel.

• Negotiate better supplier payment terms.

• Consider drop-shipping or low-inventory models.

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Holding less stock = more working capital.

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7. Secure Better Payment Terms With Suppliers

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If customers pay you in 14 days but suppliers demand payment in 7 days, you’ve created a built-in cash flow problem.

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Try negotiating:

• 30- or 60-day terms

• Instalment-based arrangements

• Bulk purchase discounts

• Early-payment savings (only if cash flow is strong)

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Suppliers often say yes—you just need to ask confidently.

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8. Use Short-Term Funding Strategically (Not Emotionally)

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Sometimes the best move is to bridge a temporary cash gap with:

• A revolving credit facility

• Invoice financing

• Business overdrafts

• Asset-backed lending

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The key is to use funding proactively, not because you're drowning.

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9. Forecast Your Cash Flow Like a Pro

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Cash flow forecasting isn’t just for accountants—it’s for anyone who doesn’t want surprises.

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Tools like Xero or Sage can help you:

• See cash gaps months ahead

• Adjust spending decisions

• Plan confidently

• Sleep better (seriously)

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Cash flow issues often come from a lack of visibility, not a lack of revenue.

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Final Thoughts

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Cash flow is the heartbeat of your business—and improving it doesn’t need to involve complex restructuring or stressful conversations.

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Small, consistent changes add up:

• Invoice faster

• Collect smarter

• Spend intentionally

• Forecast properly

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At Xenith Wealth, we help business owners strengthen cash flow, build resilience, and grow sustainably.

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If you want a deeper look into your own numbers, just say the word.

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info@xenithwealth.co.uk