5+ Ways to Increase Cash Flow for Your DTC Business [Expert Tips]

5+ Ways to Increase Cash Flow for Your DTC Business [Expert Tips]

How do you maintain stable cash flow for your direct-to-consumer (DTC) business – especially in an uncertain economy?

Below are six tips to keep the lifeblood of your company flowing.

So grab that notepad and a pen…

Increasing Cash Flow for DTC Businesses

1. Renegotiate with your existing vendors

Don’t be scared to ask your suppliers for more favorable terms.

Remember, they depend on you, too.

As long as they’re reasonable, you may be able to strike a deal.

2. Renegotiate with the payment processor

Similar to your vendors, payment processors depend on you for business.

If you’re making $1+ million a year, they may evaluate your chargeback rate and lower their commission.

3. Get payment terms on ad spend

With Facebook, for example, you can request invoicing or use a credit card to get net 30 at the end of the month on your ad spend.

An extra 30 days of wiggle room is nothing to scoff at.

4. Increase your debt facilities

Factoring companies, media financing, payment processor financing, credit cards, inventory financing…

Leveraging these things can also help you maintain a steady cash flow.

5. Refinance debt

Maybe you have high-interest debt, or you took out a quick payback loan which is now congesting your cash flow.

Try looking for companies that provide debt refinancing to help you extend your loan on better terms and free some cash.

6. Turn monthly recurring revenue (MRR) into annual recurring revenue (ARR)

Imagine a bunch of your monthly paying customers suddenly paying a slightly discounted annual subscription upfront…

Some companies will do just that! You can transform your MRR into capital for better cash flow, for a little commission.

Find them and use them.

These aren’t the only ways to free up some cash flow, of course. But they’re good places to start!

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