Factors contributing to the financial value of a company are, firstly, income, expenditure and the benefit resulting from them. To optimize the financial value, the leader in charge of this area should not only try to increase revenue, but also to accelerate cash flow. Although it is possible to raise revenues through an increase in sales, do exist to implement measures that accelerate cash flow, such as:
1. Payment in advance. Get the cash before they get to need charging a part or the entire selling price to customers, provided that this does not negatively impact the firm’s relationships with them.
2. Cash payments. Whenever possible, it is advisable to obtain them, even, if necessary, providing incentives to change chords, as may be discounts.
3. Reduce payment delays. As in the case of payment in advance, it is a practice to take place provided it does not harm the relationship the company has with its customer.
4. Accept and promote the use of credit cards, favored over delayed payments. A payment with credit card is the equivalent of a cash payment to the vendor, whereas a deferred payment means a deferred income.
In applying any of these measures you should monitor capital so that clients are treated well and never feel cheated. Customers understand smart business practice on their part if they continue to receive the service or product they demand.
Therefore, we must always consider the impact they may have financial management measures in their level of satisfaction.
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