With rising interest rates and high inflation, managing your cash flow has never been more important as a small business owner. Don’t worry, our finance experts at FSB Funding Platform have five tips for staying on top of the numbers – plus a free downloadable guide to business funding.

Be Proactive

Look at your current method for managing money in your business, such as payroll, bills, purchases and investments.

  • Do you have a system for tracking payments?
  • Have you agreed on clear payment terms when signing new clients and contracts?
  • Are the terms in your billing process too lenient?

Do you have a process in place for chasing late payments?

Update your cash flow forecast

You can’t plan for everything, and the financial situation of your business is always changing, but you can start by:

  • Reviewing your stock and work-in-progress levels
  • Checking your contractual agreements such as costs and payment terms

Considering any changes you’ve made to your business model


Whether it’s discussing terms with clients and suppliers, assessing your workforce, or reviewing your costs, know what’s coming in and going out of your business. As your business grows, you may start to face a new set of challenges, such as investing in materials, stock, or extra staff.

Be Flexible

Flexibility gives you a competitive advantage. It’s always a good idea to have some cash in reserves. Try the simple 1/3 rule: one-third for taxes, one-third for dividends, and one-third left in the business

Consider cash flow finance

At first it sounds like the worst-case scenario, but cash flow finance can reduce your upfront capital expenditure so you can better balance your books and avoid being left short

Just for FSB members, FSB Funding Platform makes it easy to understand your business finance options and get started with one simple application