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For SaaS companies, cash flow isn’t just a line on a financial report – it determines if you are meeting industry KPI's, growth pace, ability to hire, and how much runway you have before the next funding round.
As the end of the quarter approaches, every dollar that comes in earlier – or goes out later – can make a real difference.Here are 3 actions you can take NOW to improve cash flow before the quarter closes.
Incentivize customers to upgrade or renew early. Offer a discount for annual prepayment instead of monthly – it boosts ARR and provides an immediate cash injection.
Run a targeted renewal campaign Target customers whose contracts are ending next quarter and close them early.
Add profitable add-ons Focus on add-on's that can be sold quickly to your existing customer base.
💡 Quick tip: In many SaaS companies, 10% of customers are willing to pay annually upfront – you just need to structure the offer and present it so that it answer their needs.
Negotiate with cloud, software, and digital advertising vendorsVendors are more likely to be open to spreading or deferring payments and adding advertising or storage credits.
Delay non-critical development expenses and new hiresWhile defining Vs. non-critical is not always easy, delaying new hires and developments can have a meaningful affect on cash low
Review annual contracts
Explore whether switching to a monthly plan temporarily can reduce immediate cash commitments.
⚠️important: Don’t freeze investments in activities that have a high likelihood of supporting growth, but do delay expenses with less direct impact on immediate revenue.
Leverage free cloud credits (AWS, GCP, Azure) instead of paying out-of-pocket.
Sell or sublease unused equipment(laptops, monitors, furniture) – especially if you’ve moved to hybrid work.
Audit software licenses cut inactive users or consolidate overlapping tools.
💡 Quick tip: Most SaaS companies have 5–15% “fat” in cloud infrastructure and tool subscriptions – that’s money that can go back into your account immediately.
Want to see exactly where your startup is “leaking” cash?We specialize in CFO services for SaaS companies – identifying cash drains, building action plans, and extending runway.
Click here to book your free Cash Flow Strategy Call today.