Paying bills early can hurt cash flow, while increasing sales and offering credit only to low-risk borrowers can help cash flow.
Paying your bills early can hurt your cash flow as it decreases the amount of cash you have on hand for other expenses. By paying bills early, you might face a cash flow crunch, especially if unexpected expenses arise.
On the other hand, increasing your sales can help to improve cash flow as more revenue is generated. This can provide a positive impact on the cash flow of a business by bringing in more money.
Offering credit only to low-risk borrowers can also hurt cash flow if these customers default on payments, leading to a decrease in cash flow from unpaid invoices.
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