If you have just started your first business or you are in the process of launching it, you may want to speak to an accountant to keep your business finances under control. An accountant can help you determine the best trajectory to protect your money. 


It is not uncommon for new businesses to start with negative capital, as you will have needed to purchase the equipment and invest in the company before making profits. Therefore, you can work with an account to create a strategy towards repaying your business debt. 


While paying off your debt as soon as possible is tempting, you need to ensure you don’t syphon off too much. Indeed, a negative cash flow is detrimental to the business survival. Your cash flow is essentially the money that comes in and out of the business at any given time. Even if your business is profitable, a negative cash flow affects day-to-day expenses and increases debts. 

So how can you make sure your cash flow remains in the green?

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Seek cost-effective supply alternatives

Sometimes, the best option is the cheapest one. It is worth reaching out to overseas suppliers to compare prices and stocks. You might find it more affordable to transfer money abroad to buy from an international supplier than buy locally. Contrary to common belief, overseas supplies can compete with local products in terms of quality. The cost is often determined by demand, the availability of the material, the distance it needs to travel and the local workforce costs. 

Spending less on supplies of the same quality cuts down expenses without affecting revenues. It can help keep your cash flow afloat. 


Negotiate longer/shorter payment terms

Not every supplier is willing to meet your payment term request. More often than not, a supplier relies on payment terms to manage cash flow. If every customer takes longer to pay, it can affect their business stability. However, you can discuss the possibility of making an early deposit and paying off the remaining amount at a later date. For instance, if you have 30-day terms, you could try negotiating 45 days with a deposit, which can remove financial pressure for your business. 


At the same time, you may consider reducing payment terms for your clients. This will ensure that your cash flow remains in the green, as you can settle the balance with your suppliers once clients have paid you. 

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Don’t be afraid to invest further in your business

Investing in your business enhances skills, production and brand reputation. When you are already facing debts, you may be worried about putting more money into your professional presence. However, you can’t build a profitable business without an appropriate investment. 

Switching some of your tools for automated solutions (such as for client invoicing) could free up time and support your productivity, for instance. 

Similarly, learning new skills could make your services or products more appealing to your audience. 

The bottom line: Sometimes, you need to spend more to reap the fruit of your hard work. Investing in your business is also a crucial step to maximise cash flow! 


Your cash flow acts as a shield for your business. It absorbs expenses and paves the way for growth. Therefore, when your cash flow fluctuates too much and drops, the business can’t settle invoices on time or invest in growth. Protecting your cash flow through cost-effective expenses, negotiated payment terms, and strategic investments is crucial for your financial stability.