1. Make a precise and well-thought-out cash-flow projection. Normally, one would do a cash-flow projection every six to twelve months. At the moment it is probably advisable to do it every month, even every week. You will find a software package like Microsoft Excel brilliant at helping you achieve this.

2. Keep in touch with the people who owe you money. Ideally, call them yourself. When the owner of a business rather than an administrative assistant calls to collect a debt, it almost always gives the matter greater urgency.

3. Pay your own bills on time. Putting off paying your own bills only delays problems. If you haven't got the cash to pay all your bills, then pay part of them to keep your suppliers happy.

4. Lease rather than buy equipment. Even consider selling your building and leasing it back. This could free up sizeable amounts of cash.

5. Factor your invoices. Factoring, in which financial institutions buy receivables for a discount and then take over the collection, is something large companies embrace more readily than small ones. It is just another form of financing. If cash is tight, factoring (sometimes called 'invoice discounting') can be an ideal way to solve the problem.

David
Small Business Resource