10 ways to improve the cash flow equation

Ask for all or a portion of payment up front: There are many products and services that you pay for on delivery or in advance. So why give your customers months to pay up? Asking for at least a deposit up front is a great way to jump-start your cash flow. And if you establish the policy fairly and properly, it shouldn’t alienate good customers.
Sign up for a merchant account: If you already have a merchant account, encourage customers to use this option more often. Sure, you pay a fee. But for speedier cash flow, credit cards can’t be beat. You get your money fast and customers are accustomed to paying with plastic.
Pay bills only when you have to: That doesn’t mean you should be late; only that you needn’t be early. For bills due net 30, for example, why pay at day 12? Paying right at the deadline keeps vendors happy, but will help your own cash flow crunch.
Manage receivables more closely: Create a detailed “aging” schedule of what you are owed, by whom and for how long. Call overdue accounts quickly, focusing first on the largest amounts due. Ask if there is anything you can do to expedite payment.
Create a cash-in/cash-out budget: Note specific due dates for payables as well as receivables. Although the balance between the two won’t always be predictable, the budget can give you a fairly accurate picture of where your business stands in the cash flow derby.
Revamp your invoice: A messy, unclear or inaccurate invoice is far less likely to be paid. Make sure that what you send out reflects care and attention to detail - just as you would in providing your product or service.
Offer a discount for overdue receivables: This can bring some quick cash in the door, but play this card only after you’ve called the customer to ask for full payment. Set a short deadline and make it a sweet enough deal (10-20%) for them to respond.
Accelerate your invoicing: If you invoice customers, do it quickly. Invoices can be prepared in advance, and sent out at the earliest possible moment. More and more small businesses are sending invoices as PDF files via email. This can save days of postal delays. Ask customers if they will accept invoices this way.
Cut expenses: Accelerating positive cash flow is great for your business, but slowing the negative cash flow has the same effect.
Set up a commercial credit line: Do this when times are good. Then tap the line when the need arises.