Cash Flow Management: Staying Solvent When Clients Pay Late
Forecasting, payment terms and tools to reduce the risk of running out of cash.
4 min read · Business & Freelance
Profitable businesses can still run out of cash.
Forecast
List expected income and costs for the next three to twelve months and update it monthly.
Example with default values. Open the calculator →
Speed up payments
- Shorter terms and deposits.
- Cash discounts for early payment.
- Prompt reminders.
Keep a buffer
When cash gets tight
Talk to your bank and key suppliers early, delay non-essential spending and consider factoring or a short credit line. Do not stop paying social contributions and taxes, because arrears carry interest.
Hold reserves for three months of fixed costs. See the cost of late payment with the late payment calculator.