How To Manage Cash Flow In An International Business

All business owners know that managing cash flow is so important. If you don’t have a good amount of cash in the business at all times, you might struggle to pay your overheads and that’s when you’re going to run into trouble. You probably already know how to manage your cash flow properly, but if you’re considering global expansion, you’re going to run into a lot more issues. When you’re operating in different countries and your money is spread out all over the place, it’s so much harder to manage cash flow effectively. If you’re planning international expansion in your business, these are some of the best ways to manage your cash flow properly.

Integrated Billing Systems

One of the major issues that you’re going to have is trying to deal with different billing systems for different products in a lot of different countries around the world. It’s so important that you’re getting your invoices paid on time but that’s hard if you can’t keep track of all of your separate billing systems. You can get around that by using a SATbill system to organize things a lot better. You can integrate all of the different billing systems on one simple to use piece of software so it’s a lot easier to keep track of exactly what you’re owed and when the payments are due. This makes it easier to collect invoices as well as make good projections about your cash flow.

Manage Overheads Properly

When your business is expanding overseas, you’ll need to invest in new office buildings and new employees. But it’s important that you manage these overheads properly, otherwise, all of your available capital will disappear and you’ll struggle to carry on operating at a profit. When you’re finding a new office space in a new country, always start small. Hire only the staff members that you really need and just enough office space for them. Once you start to break into new markets and you’re bringing in more revenue from those new countries, then you can start expanding your operation out there.

Offer Early Payment Incentives

Getting people to pay you on time or even early is the easiest way to increase cash flow. This is especially challenging if you’re offering services on an account because you’re providing the services before you’ve been paid for them. But if you can encourage people to pay early by offering them small discounts, you can keep the flow of cash moving quickly.

Manage Inventory Properly

It’s important that you have enough inventory to meet demand because you don’t want customers waiting a long time for products. However, if you go overboard and you’re keeping too much inventory, all of your money is tied up in that and you don’t have enough liquid capital. You need to be making accurate sales forecasts and using a good inventory management system so you’re holding enough products, but you’re not wasting capital manufacturing and storing inventory that you don’t need.

Managing cash flow is so much harder when you run an international business, but if you use these tips, you should be fine.

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