Actions to Step Up Cash Flow Management

SunTrust Small Business Cash Management Evaluator Action Guide

Actions to Step Up Cash Flow Management

Your approach to managing cash and preparing for cash shortfalls affects your business's growth prospects, your stress level and the security of your personal finances. Cash management is one of the top three priorities for small businesses.* Follow the action steps below, and check out the additional resources for best practices to manage your cash flow.

Billing

After a sale, how long does it take to request payment/send an invoice?

Get bills out immediately. The sooner you bill, the sooner you could get paid. Send bills/invoices right after a sale. Make billing the last step in service delivery.

Use electronic billing. Email invoicing can provide better tracking, save time and reduce paper and postage costs.

Collections Strategies to Find Working Capital Take these steps for more ways to get cash into your business faster.

Customer Payment Options

How many payment options do you offer your customers?

Use merchant services. Offer your customers more ways to pay by accepting credit and debit cards via point of sale, contactless and mobile merchant services options. Merchant services offer the most convenient customer payment options and allow you to access your funds sooner.

Offer electronic payments for your customers. Accept credit card or ACH payments online to provide payment convenience, reduce your collections time and lower your cost to collect customer payments.

Managing Your Cash Flow Four best practices for putting your business's cash flow to work..

Customer Payment Options Action Guide Use merchant services to offer your clients additional payment options.

Payment Acceptance with Merchant Services Cater to your customers' payment preferences and keep business coming.

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Collections

How long after requesting payment/invoicing does it take to get paid?

Track customer receipts. Manage accounts receivables by posting payments promptly, documenting customer conversations and following up on outstanding invoices.

Reward early payments and act on late payments. Consider a discount for early payments and address late payments with calls, emails, letters and late fees.

Accelerate payments with merchant services to receive funds quickly and offer an attractive card payment option to your customers.

Learn about Merchant Services SunTrust makes it easy to start accepting your customers' credit and debit card payments.

Infographic: Pick up the Payments Pace Timely customer payments keep cash flow healthy.

Collecting Action Guide Invoice promptly, track receipts and take action on past due accounts.

Payments

When do you pay vendors and suppliers?

Pay your bills online. Use Online Bill Pay for pre-scheduled or one-time payments without check printing or postage. QuickBooks? users can use Direct Connect to set up payments and exchange banking data.

Consider a business credit card. Using business credit cards for business purchases further extends cash flow and helps manage expenses.

Paying Action Guide Make routine and/or large payments such as ACH, wire transfers, etc., and take advantage of early-payment trade terms.

Living with Checks Use electronic payments to take control of payment timing and processing costs.

Electronic Payments

What portion of your payments to vendors and suppliers are made electronically by credit card, Automated Clearing House (ACH) or Online Bill Pay?

Pay your bills using a business credit card. Credit cards are increasingly accepted by suppliers, and they typically allow you to extend your days of payables outstanding by 50% or more.*

Use Online Bill Pay or Direct Connect to QuickBooks?. Save time entering payments, eliminate check printing and mailing and take advantage of electronic payments.

Getting a Handle on Checks Move from checks to electronic payments to reduce fraud risk and better control payments.

Making Electronic Payments Pay Off Take control of a time-consuming payments process with a switch to electronic.

Expense control

How do you use expense reviews, budgets and employee limits to control spending?

Issue business credit or debit cards with individual spending limits and gain greater visibility into where your cash is going and where you can save.

Conduct a detailed expense review by re-thinking specifications, re-sourcing items with vendors and consolidating purchases for best vendor negotiating power. Update budgets and purchasing guidelines for your staff.

Controlling Employee Purchases to Cut Costs Control costs with a card program for your staff.

Squeezing Expenses to Generate Cash Find ways to reduce costs and finance growth.

Add a Business Credit Card Use SunTrust Business Credit Card Online to manage spending and control expenses.

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Monitoring Cash

How often do you monitor cash flow reports?

Track cash. Use a cash flow statement to track when your money comes in, when it goes out (and to where) and how much cash you have left over after paying expenses.

Follow the cash cycle. Look for process improvements that will shorten the cash cycle and provide more access to cash.

Managing Cash Flow: Critical to Growth Learn a broad range of cash management practices that can help a growing business.

Monitoring Cash Guide Use a cash flow statement for a complete picture of cash moving in and out of your business.

Cash Reserves

How adequate are your cash reserves?

Set reserves goals. Study your cash flow statements and identify seasonal or regular cash flow swings. Think about funding needs for unexpected business events -- from the loss of customer(s) to opportunities for growth -- to set reserves goals.

Evaluate the best reserves account options. You can keep the reserves in your operating account or open a separate account such as a money market that could provide interest earnings.

Cash fluctuations

Are you prepared to handle cash flow variation resulting from seasonality, loss of a major customer or unexpected expenses?

Avoid cash shortages by boosting demand during weak periods and diversifying your customer base. Have a business credit card to cover unexpected expenses.

Build cash reserves. Set targets to put aside cash for reserves, and avoid the stress, lost sales and slowed production of diverting owner attention from growing the business to search for cash.

On the Hunt for Cash Flow Understand the ins and outs of cash flow for your business.

Cash Reserves Action Guide Learn about creating a cash reserve account to cover shortfalls.

Set up a Business Advantage Money Market Account Build your business cash reserves and have them when you need them.

Simplicity and Complexity of Managing Cash Flow Owners need to have a plan for the ups and downs of cash flow.

Open a SunTrust account for your cash reserves Find the right SunTrust account for the cash reserves you need when cash runs short.

Cash shortfalls

Which of the following best describes how you've handled cash shortfalls?

Speed cash into your business by offering card payment options via merchant services, billing customers at/immediately after the sale and tightening the terms on receivables.

Secure access to funds to cover shortfalls using cash reserves, a business line of credit or a business credit card.

Podcast -- Focusing on Cash Flow Learn about the importance of cash flow and having a plan for the unexpected.

Lines of Credit: Support the Short-Term Cash Needs of Your Business Be prepared with a ready source of funds to counter cash shortfalls.

Take Your Business to the Next Level

SunTrust has the products and services to help move your business forward. Visit your nearest SunTrust branch or smallbusiness to learn more.

*2019 SunTrust nationwide survey of 515 small business owners.

3 SunTrust Bank, Member FDIC. ?2019 SunTrust Banks, Inc. SUNTRUST and the SunTrust logo are trademarks of SunTrust Banks, Inc. All rights reserved.

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