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Top 4 cash flow tips for engineers managing a firm

  • Highlights

  • Setting-up long-term goals

  • Technology for operational excellence

  • Timely payments

  • Tackling immediate requirements

Your business requires funds to purchase or maintain machinery or equipment, renew a rental lease, pay your employees, or managing your working capital to ensure smooth business functioning. What is common is that to fund these day-to-day requirements, you will need a steady cash flow. Here are a few tips to help you manage your cash flow better.

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1. Work around a goal

You attend to your clients through constructive solutions. Apply the same principle to your business by setting up achievable goals. For example, aim to move to a bigger office space, hire more staff, plan business expansion, etc., within a given time frame. This will give you a clear idea of how much funds you need to attain that goal. A well-conceptualised plan can facilitate your cash flow management as you are not caught unaware of any sudden expense.

However, in case any unanticipated business expense crops up, you can easily cater it with a Flexi Loan for Engineers as it helps you to make multiple withdrawals as per your needs and pay interest only on the used amount and not the entire loan sanctioned. You can also repay your loan before an EMI falls due at no added cost.

2. Utilise technology to improve performance

A positive cash flow means your firm makes more profit. Thus, streamlining operations of your engineering firm will save you from wasting resources. Simple changes like using internal co-working software to correspond with your team, switching to automated accounting through the right software, and introducing efficient interactive advisory systems like bearing calculators or linear motion business tools, etc., will increase your dependency on technology and reduce your dependency on manpower. Lower manpower involvement will thereby reduce the scope of errors and increase performance efficiency. But, introducing technology at the very core of your operations can initially be expensive. Instead of depending on your business’ income to fund this, you can take an Engineer loan from Bajaj Finserv. An industry-first offering, these loans come with simple eligibility criteria, a high loan amount up to Rs.15 lakh, and a flexible repayment tenor.

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3. Observe stringent payment practices

One disciplined customer is better than 10 customers who delay or default on payments. Blocked payments can negatively impact your cash flow and hamper your business operations. So, run a background check on your customers to know their paying behaviour to be sure that you receive timely payments. Make the process competitive by offering your customers early payment discounts and keep credit requirements strict. Notify the clients about the payment policies of your firm through a written set of standards.

4. Manage immediate needs with minimum funds

Fulfil additional project demands by spending the least. For example, you can lease out machines and then take up similar projects in a row, which requires the use of this equipment. The income from these projects can then be used to purchase the latest equipment after proper planning. This will then turn your expenses into investments.
You can also opt for a Flexi Loan for Engineers for any other immediate expense.

Follow these simple tips to bring in a balance to your income and expenditure, and create a steady cash flow for your engineering firm.

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The material contained in this site and on associated web pages is general information and it is not intended to be advice on any particular matter. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. The decision with respect to any financial product or opportunity or nature or suitability or choice or the viability of any product or service shall always be sole responsibility and decision of the subscriber and user.

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