How to Manage Your Cash Flow and Keep a Good Business Credit Score

If you run a small business, you’d need loans to finance big projects and expand your organization. Having a good credit history will not only help you qualify for a loan quickly, but it will also help you negotiate better terms from financial lenders and suppliers. You can get low-interestrates, higher credit limits, and can purchase inventory and equipment on credit.

Managing your business cash flow is vital to having a high credit score. You need to track revenue and expenses, cover all payments, and set aside money for business taxes. It involves an extensive accounting and tax preparation system that can be tiring even though it’s crucial.

5 Ways to Manage Your Cash Flow

Process Bank Transfers Quickly

Processing multiple bank transfers can be time-consuming and error-prone. You could spend all day balancing your account to ensure you pay suppliers the right amount and still miss out on one or two expenses.

Unfortunately, delayed payments affect your credit score negatively. It's best to pay in batches to make your bank transactions easier.You can also automate recurring payment transfers to save time. You’d need to ensure that you always have some money in your account so that such payments won’t result in an overdraft.

Track All Upcoming Payables

Account payable is every amount you owe creditors. This debt includes accrued expenses for suppliers, utility bills, and payments to car leasing agencies. Account payables are usually short-term debt. They’re liabilities, so you’d need to manage them effectively to improve your credit score.

What happens when you delay debt payments or forget to pay for accrued expenses?Your action sends a negative signal to creditors.

Your business credit score is vital to growing and running your company. You’ll need to take out loans for big projects that will yield a higher profit. To avoid a bad credit score, ensure you track all your upcoming payables. Know what you owe, how much debt you owe,who you owe, and date for payment.

Digitize Your Payments

Use expense management software to digitize your payments. It will help you track due payments and save receipts. It will also minimize human error because you have a streamlined computer accounting system with built-in checks and balances.

When your expenses are digitized, you'll avoid any potentially fraudulent or unauthorized transactions, reduce paperwork, and save time.

Set Up Reminders

You can put payment notifications on your devices or set an alarm to avoid paying late. Early payments will eliminate costs like additional charges and interest fees.

However, all these processes won’t work if your account balance is low. Withdrawing expenses from a bank account that doesn’t have enough money could lead to an overdraft, which can still negatively impact your credit rating. As long as suppliers have provided a good or service, consider setting out money for the accrued expense,even if you have a grace period for payment.

Consolidate Subscriptions

Your business could have multiple subscriptions from a single customer to one product. You can also subscribe to pay to one supplier or purchase a single product several times. Raising an invoice for each transaction is repetitive and time-wasting. It might even make you lose track of your cash flow.

Instead of treating every purchase differently, why not consolidate all subscriptions? It helps you to keep track of your expenses and pay for related purchases. You’ll also increase productivity, reduce delayed payments, and bring order to your bills.

Set Up Monthly Direct Debit Reviews

A direct debit is an agreement between you, your bank,and a third party. You instruct your bank to allow the supplier to withdraw specific amounts from your account at specified dates. You can also set up a system where customers have a direct debit arrangement with you.

Consider reviewing your direct debits monthly to ensure the third party is withdrawing the agreed amount for the goods or services received.

Pay Bills on Time

To keep a good credit score, you’d need to pay your lenders and suppliers in full and on time. Although such expenditure can be inconvenient, they help save time.  Also, ensure that lenders report your payment history to credit bureaus.


Positive cash flow helps you generate profit. It would help if you had cash to pay your employees and suppliers and to produce goods.Without money, you cannot run your business. Besides, if you have a negative cash flow, creditors won't believe that your business can repay a loan, and your credit score rating will get worse.

So then, how do you solve the problem of processing money transfers? How do you track your upcoming payables so that you won’t delay payments or forget to pay? What about handling every financial transaction you’ve subscribed to in this subscription economy?How do you make your financial business process seamless and secure, so that you can have an excellent credit report?

The best answer is a technology-based solution. ZayPay can help you consolidate all your payments and transaction information. You can pay in batches, save your receipts, and digitize payments effectively with this expense management software. ZayPay will also notify you of future payments and help you track all your company's upcoming payables.

That way, you’ll improve your credit score while saving time and costs by using a digital expense manager.





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