5 Hacks To Boost Near Term Cash Flow When You're In A Squeeze

As an eCommerce store owner, you know the holiday season is a huge opportunity. But when you've spent the last few months loading up on inventory and debt in anticipation of the holidays, there's often a need to stretch your cash just that little bit further in order to see things through to the end of the year. 

The good news? By implementing a few simple cash flow hacks, you can keep cash flowing smoothly and make sure you’re ready to capitalize on holiday sales. Here are 5 strategies we've used (as recently as this week!) to help with cash flow management when things are getting tight. 

1. Use Automated Cash Sweeps across Multiple Expense Accounts

Automated Cash Sweeps are 'rules' that you can apply to your bank accounts to automatically move money between accounts on a regular basis based on set rules. For example you might have one account in which you receive all your revenue, then on a daily basis you move $500 into a 'loan repayment account', $10K into a 'payroll' account, then 40% of what's remaining goes to the 'inventory' account and the remainder is used for overheads and indirects. Essentially its a form of automated cost control.

You can't spend money you don't have, and if you're only putting into an account what you can afford to spend this method puts in place some very hard guardrails on what you can spend on each expense type.

In my own business, I even went as far (in a few cases) as setting up bank accounts for specific vendors - for example UPS. 

There are some 3rd party tools that will integrate with your existing bank and do these cash-moves for you, as well as some banks that have this functionality built in. Shoot me a message if you'd like to learn more about this and I'd be happy to point you in the right direction. 

2. Boost Cash Flow by Offering Gift Cards at a Discount

Gift cards are a fantastic way to get cash upfront. By offering gift cards at a slight discount—say, $45 for a $50 card—you’re encouraging customers to pay you now, even if they redeem their purchases later. This boost in cash flow is helpful for covering operational costs or investing in new products while also setting up future sales. Plus, many customers redeem only part of their gift card or purchase beyond its value, so you’ll likely see a healthy return.

Essentially the offer you make to your customers is that they 'lock in' their BFCM discount now by buying a discounted gift card. This means you get the cash earlier, and they still get their holiday bargain. 

3. Work with Your Suppliers on Hold and Release Deals

Inventory is vital, but stocking too much can tie up precious cash. A “hold and release” deal allows you to negotiate with suppliers to hold onto the inventory until you’re ready for it. This way, you don’t have to pay for stock upfront and can release and pay for it only when sales demand it. This arrangement can reduce storage costs and create more cash flow flexibility.

To set up a hold and release deal, start a conversation with your suppliers about timing. Explain your needs and propose a solution that benefits both parties—many suppliers are open to such agreements, especially with long-term customers.

4. Negotiate Longer Payment Terms with Your Suppliers

If you haven’t already negotiated payment terms, it’s time to reach out to your suppliers. Moving from a 30-day payment schedule to 45 or even 60 days can significantly improve your cash flow by giving you extra time to collect revenue before making payments. Many suppliers are open to extending payment terms, especially if it means securing your repeat business.

5. Build and Maintain a Cash Flow Model

Building and maintaining a cash flow model is one of the most effective ways to stay on top of your finances. A 13-week cash flow model allows you to see exactly where your money is coming from and where it’s going, helping you anticipate future needs and avoid any cash flow crunches. Regular updates to this model give you a real-time snapshot of your business’s health and help you make informed decisions.

We have a free downloadable template (below) to help you get started with your own cash flow model—be sure to check it out and take control of your cash flow with ease!

Start Implementing These Hacks for a Healthier Cash Flow

Cash flow can be a challenge, but these 5 hacks make it easier to keep cash moving through your business smoothly. Start small by implementing one or two, and see the difference it makes. And if you’re looking for more personalized guidance, our fractional CFO services are here to help you make the most of your eCommerce business’s financial future.