7 Quick Ways to Increase Your Client’s Cash Flow
As a CPA, you know that managing cash flow can be one of the biggest challenges your clients face. With rising debt and high monthly payments, it’s crucial to find ways to improve their financial position. Instead of advising your clients to take on more debt, you can help them make strategic financial moves that immediately enhance their cash flow. Here are seven smarter and quicker ways to free up working capital for your clients:
1. Lower Your Clients’ Current Interest Rates
Refinancing existing business loans to secure a lower interest rate can significantly reduce your clients’ monthly payments. Even a modest reduction—such as 50 basis points—can save thousands of dollars annually. With strong credit and business equity, your clients may qualify for much better terms than when they first secured their loan.
2. Lengthen the Term of Your Clients’ Debt
By extending the term of your clients’ loans, you can drastically reduce their monthly payments, providing more financial flexibility. Stretching repayment over a longer period gives your clients immediate cash flow relief, helping them reinvest in their business and stay financially stable.
3. Pay Off Seller Notes from Previous Acquisitions
Many of your clients may have acquired their businesses through seller-financed deals, often with high-interest rates and short repayment periods. Refinancing these obligations with a longer-term, lower-rate loan can reduce immediate cash outflows and improve overall profitability. As a CPA, helping your clients refinance seller notes can free up critical cash and improve their financial outlook.
4. Refinance Your Clients’ SBA Loan with a New Conventional or SBA Loan
If your clients have existing SBA 7(a) loans, refinancing with a new SBA loan or a conventional loan could allow them to take advantage of better terms. A new loan with a longer repayment term and lower interest rates can reduce monthly payments, improving cash flow and providing more room for growth.
5. Convert an SBA 7(a) Loan into an SBA 504 Loan
If your clients used an SBA 7(a) loan for real estate or large equipment purchases, transitioning to an SBA 504 loan can provide substantial savings. The SBA 504 program offers fixed, lower interest rates and longer repayment terms, freeing up thousands in monthly cash flow for your clients. This can be a great way to help businesses with significant capital expenditures.
6. Help Your Clients Acquire a Competitor or Additional Location
Strategic acquisitions can provide long-term financial benefits for your clients. By acquiring a competitor or expanding to another location, your clients can increase market share, boost revenue, and optimize operational efficiencies. Advising your clients on the right acquisition opportunities can help them grow their business and enhance cash flow.
7. Add Additional Services to Increase Revenue
Encouraging your clients to expand their service offerings can help them generate additional income and attract new customers. For example:
• A retail client could add delivery services or expand their product line.
• A professional services firm could introduce subscription-based services or new consulting options.
• A restaurant client could add catering or new menu items.
Expanding services not only boosts revenue but helps your clients stay competitive and adaptable.
Help Your Clients Act Now for Immediate Cash Flow Relief
By implementing these strategies, you can help your clients reduce expenses, improve liquidity, and reinvest in business growth. As a trusted CPA, guiding your clients through refinancing, acquisitions, and revenue-enhancing strategies can provide them with the financial stability they need to succeed. A better loan structure and business strategy today mean stronger financial results tomorrow!
Should you know of a client who could benefit from these planning strategies, please don’t hesitate to reach out. We offer a referral partnership program you won’t want to miss!
