Making Payments

Does it seem that no sooner does money come into your business, than it must go out again? Good cash flow management is a critical part of all businesses - and the way it’s managed can mean the difference between profitability and insolvency.

By implementing strategies and solutions before cash flow problems present themselves, you can remain firmly in control even during the lean times.

Take control
Some effective ideas for reducing the likelihood of an unmanageable influx of bills:

• conduct a rolling cash flow forecast for the next 12 months
• control cash outflows by paying on due date, not before
• accelerate receiving payments
• ensure you have an accounting system which will alert you to due payment dates
• try negotiating better credit terms with suppliers
• plan the purchase/leasing of business items
• don’t be late with payments – maintaining a good business relationship with your suppliers is vital

Establish lines of credit
To prepare for times when client payments simply don’t match the bills you have to pay, it’s important to put some short term financing arrangements in place.

You may like to consider a business card or a business overdraft as your line of credit.

Ensure easy day-to-day transactions
To ensure payments are a minimum of hassle, your everyday business account must provide you with the appropriate features for your business. Take a look at our range of Business Transaction Accounts.

Making international payments
When buying goods or services from overseas, it is important to put in place fast, secure and effective payment solutions. See Managing Payments.

Putting your strategies into place
Remember, with a good understanding of your cash flow, you’ll know how much excess cash you have to save or invest, which can make all the difference in planning how to make your money work harder for you.

Important information about advice
As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances.

All products mentioned on this web page are issued by the Commonwealth Bank of Australia, view our Financial Services Guide (PDF 56kb). View Product Disclosure Statements (PDSs) for Business Cheque Account (PDF 232kb) and QuickLine (PDF 310kb) and consider them before making any decision about these products.