Cash flow management tips for growing SMEs

More businesses fail from poor cash flow than from poor profit. Managing the timing of money in and out is what keeps the doors open.

Forecast, do not guess

A simple rolling cash-flow forecast shows you shortfalls before they happen, giving you time to act.

Get paid faster

• Invoice promptly and clearly, with payment terms stated.
• Offer mobile money and bank options to make paying easy.
• Follow up on overdue invoices consistently.

Manage what goes out

Negotiate supplier terms, time large purchases carefully, and keep a buffer for tax and SSNIT obligations so they never catch you short.

Build a reserve

Aim for a cash cushion that covers a few months of fixed costs. It turns a crisis into a manageable bump.