Cash flow is the heartbeat of any business—but it’s also one of the most complex to manage. While profitability might look good on paper, poor cash flow can quickly lead to operational bottlenecks and strained supplier or customer relationships. For finance leaders, keeping a close eye on the drivers of cash flow is essential to maintaining liquidity and stability.
What are the 7 drivers of cash flow?
Here are seven key drivers that directly impact how quickly and reliably cash enters your business:
1. Customer Credit Terms
The longer your buyers have to pay, the longer your cash is tied up. It’s a balancing act—offering flexible terms can win customers, but extended payment windows can slow cash conversion. Reviewing and adjusting terms based on customer profiles and risk levels is a simple but powerful lever.
2. Invoice Accuracy and Speed
Delayed or incorrect invoices are a major roadblock to timely payment. The faster and more accurately invoices are issued, the sooner payment clocks start ticking. Automated billing through e-facturering ensures your invoices are compliant, correct, and sent without delay- making it one of the most controllable cash flow drivers in your process.
3. Dispute Resolution Efficiency
When invoice disputes arise, they can hold up payment for weeks. Having a clear process to track, prioritise, and resolve disputes—supported by real-time visibility—can help unlock stuck payments and reduce Days Sales Outstanding (DSO).
Bekijk onze video hieronder:
4. Order Accuracy and Fulfilment
If what’s delivered doesn’t match what was ordered, billing gets delayed. Errors in order data, fulfilment, or product availability create unnecessary cycles of back-and-forth. Automating your sales order process ensures clean data flows from order to invoice.
5. Payment Methods and Automation
Making it easier for customers to pay is a straightforward way to improve cash flow. Offering digital options like direct debit, online payment portals, or automated bank transfers can remove friction and speed up collections. Flexible, tech-enabled payment options are increasingly important cash flow drivers for reducing delays and accelerating receivables.
6. Receivables Follow-Up and Collection
Even with the best invoicing process, some customers will still pay late. Proactive collection efforts—automated reminders, follow-up workflows, and prioritised account tracking—are key to converting receivables to cash faster.
7. Customer Segmentation and Behaviour
Not all customers are the same. Understanding who consistently pays on time (and who doesn’t) allows you to tailor credit terms, follow-up cadence, and escalation processes more effectively—ultimately improving cash predictability. This segmentation insight is therefore one of the more strategic drivers of cash flow, helping you allocate resources where they matter most.
Optimising Cash Flow Starts with Visibility
Each of these drivers of cash flow is interconnected across your order-to-cash process. In fact, the more visibility and control you have—from order accuracy to collections—the more stable your cash flow becomes. Moreover, by identifying weak points and automating key steps, businesses can improve speed, reduce errors, and create a more predictable and resilient cash flow cycle. Now is the time to take a closer look at where your process could be working harder for you.
About B2BE
B2BE delivers electronic supply chain solutions globally, helping organisations to better manage their supply chain processes, providing greater levels of visibility, auditability and control. We’re driven by a passion for what we do, inspired by innovation, and underpinned by a wealth of knowledge. With over 20+ years of experience, the B2BE teams operate worldwide.
Ga voor meer informatie naar www.b2be.com.