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how to finance ‘pay 8910’

February 24, 2010

ok,

we have  established that paying your suppliers earlier will give an enormous boost to the economy.  But how to finance this cash out (without going to the bank and ask for a new loan, ‘ the easy way’ )?

here are some very easy steps to free up cash within in your company. Note: if you do no do it, your bank will ‘ ask’  you to do it!

1) sell excess stock. It is money lying around. Do not worry about ‘bookvalue’  as your creditor does not mind and the cash does not taste differently

2) sell excess machinery. Same as above.  Selling via an internet boker is easy and cheap. You will be surprised the money that will come in, even in the bad market situation we are at.

3) stop buying stationary, or anything else that is not directly related to the stuff you are selling. It will ask some creativitity from your people.

4) have your sales invoices sent out earlier. Even when it is automated, I am sure a few days can be won in your logistics.

5) get rid of subscriptions, lease  etc. Renegotiate everything.

6) pay salaries a few days later. This one is tricky, but in these days everybody is open for this type of action.

7) Insurance: go from quarterly payments to monthly payments

I am sure you can think of a few more….

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