Some companies offer their customers a cash discount for early payment, but a better strategy is discounts on future purchases. This costs you less money, preserves cash, builds customer loyalty, and avoids disputes with aggressive clients who tend to pay late but take the discount anyway. Get the best rates. If you have idle cash, make sure it's in an interest-bearing account. Payroll, accounting, and benefits can be handled by outside companies with expertise in these highly complex fields.
Good ones are well worth the money.
For details, check out stories from our archives and the Buyers Zone guide to payroll services. Use credit-card debt sparingly. Many entrepreneurs use credit cards to start a business or tide it over in tough times. Keep a close watch on the national economic picture for signs of an upswing in interest rates, which could result in a higher payments for you. For more information on managing your business finances, go to the SOHO Guidebook .