Growing sales is a good sign for any business. More customers, bigger orders and higher revenue all suggest that your business is moving in the right direction.
But there is one challenge many growing businesses face: sales do not always mean cash in the bank.
You may have made GH₵50,000 in sales this month, but if your customers have 30 or 60 days to pay, that money may not be available when you need it.
Meanwhile, salaries, suppliers, rent and other expenses still need to be paid.
This is why cash flow management is so important.
Revenue vs. Cash Flow: What’s the Difference?
Revenue is the money your business earns from selling its products or services. Cash flow is the actual movement of money into and out of your business.
For example, if you invoice a customer GH₵20,000 with payment due in 60 days, you have made a sale, but you do not yet have that GH₵20,000 available to spend.
If several customers are paying late or on long payment terms, a growing business can quickly find itself short on working capital.
4 Signs Your Business May Have a Cash Flow Problem
1. Your unpaid invoices keep increasing
If your sales are growing but customers owe you more and more money, your cash may be tied up in outstanding invoices.
2. You struggle to pay suppliers on time
Constantly waiting for customer payments before you can pay suppliers could indicate that your cash flow needs attention.
3. You rely on personal funds
If you regularly use your personal money to cover business expenses, your business may not be generating enough accessible cash.
4. You are growing but still feel financially stretched
More sales should give your business more room to grow. If growth is creating more financial pressure, your cash conversion cycle may be the problem.
How to Keep Your Cash Flow Healthy
Track your outstanding invoices. Know who owes you, how much they owe and when payment is due.
Invoice promptly. The sooner you send an invoice, the sooner you can expect payment.
Set clear payment terms. Make payment deadlines and expectations clear from the beginning.
Follow up on payments. A simple reminder can help customers stay on top of their payment deadlines. If you use Built, you can also set up invoice reminders to make payment follow ups easier and more consistent.
Forecast your cash flow. Look ahead at expected income and upcoming expenses so you can identify potential cash shortages early.
What If Your Money Is Tied Up in Unpaid Invoices?
Sometimes, the problem is not that customers will not pay. It is simply that they will pay later.
If your business has eligible unpaid invoices but needs working capital now, invoice financing can help bridge the gap.
With BuiltFloat, eligible businesses can access funding against qualifying outstanding invoices, giving them working capital while they wait for customers to pay.
This can help with immediate business needs such as purchasing stock, paying suppliers, covering payroll or taking advantage of new opportunities.
However, financing should complement good cash flow management, not replace it. Businesses should still maintain accurate records, monitor invoices and plan their cash flow carefully.
Keep Growing Without Letting Cash Flow Hold You Back
Growing your sales is important, but sustainable growth requires more than revenue.
You need to know when your money is coming in, when it is going out and how much cash is actually available to your business.
Keep your records organised, invoice promptly, follow up on payments and plan ahead.
And when your cash is tied up in eligible unpaid invoices, solutions such as BuiltFloat can help bridge the gap.
Because growing your business is easier when your cash flow can keep up.
This is managed by the marketing department
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