Cash Management: Tip Four

In order to reduce of defer expenses, consider...

• evaluating your payroll costs; consider “across the board” pay reductions or reduced work weeks, as opposed to terminations and lay-offs
• contacting your suppliers and vendors to request extended payment terms and/or reduced costs (i.e., utilities, freight, etc.)
• for all rent and lease contracts (office, automobiles, equipment), requesting deferral or reduction of upcoming lease payments
• evaluating purchase commitments (inventory, capital expenditures, etc.) and consider requesting deferral or cancellation
• analyzing current inventory levels; if there are excess levels request to return for cash refund or future credit
• eliminating all non-essential spending (i.e., direct marketing)
• contacting your credit card companies to obtain waiver of late payment penalty fees and reduction in interest rates