Cash flow improvement starts by stopping money from leaking out of the business before it turns into a funding problem. Profit on a management account does not guarantee cash in the bank. Delayed customer payments, supplier price rises, payment fees and slow invoicing can all weaken working capital while the business still appears profitable.
For owners, CFOs and Operations Directors, the aim is clear: protect margin, make cash generation more predictable and remove the operational friction that holds money up. Since founding DMT Solutions in 2016, from our London and Essex base, we have combined procurement, open banking and technology expertise to help organisations address these pressures through better commercial control, rather than relying on short-term borrowing.
Stop Margin Leakage Before It Becomes a Cash Crisis
Cash pressure rarely begins with one dramatic event. More often, it builds through small, repeated leaks across energy, telecoms, insurance, shipping, software, payment processing and internal administration. Each item may seem manageable in isolation. Together, they can reduce working capital and place avoidable pressure on EBITDA.
Business Owners need to see where profitability is being lost. CFOs need a dependable view of opex, supplier risk and incoming cash. Ops Directors need systems and processes that do not trap cash in manual work, disconnected data or delayed invoice approval.
We recommend treating cash flow as two connected questions: how quickly money arrives, and how much of each sale remains after operating costs and payment charges. A business can improve both without slowing growth, but only when it understands where the pressure is actually coming from.
Diagnose the Cash Gaps Hidden in Your P and L
A proper review begins with a baseline, not a broad instruction to cut spending. We review the previous 12 months of management accounts alongside bank activity, aged debtors, aged creditors, supplier invoices, direct debits and payment processing statements. The objective is to identify where real cash movement differs from the assumptions in the budget.
The most useful measures usually include:
- Gross margin by product, service line or location
- EBITDA, debtor days and creditor days
- Customer concentration and overdue debt exposure
- Transaction fees and chargeback ratios as a percentage of sales
- Monthly supplier commitments, contract terms and renewal dates
Even a modest increase in unit cost can have a noticeable effect where transaction volumes are high or margins are already tight. Payment fees, for example, can quietly grow as sales grow, particularly where card processing terms have not been reviewed for some time.
We often see this pattern with multi-site operators. The leadership team may initially assume late-paying customers are the main issue. Once the numbers are consolidated, the pressure can be spread across rising merchant fees, uncompetitive utility agreements, duplicate software subscriptions and inconsistent purchasing between sites. The answer is not to guess. Quantify each leak first, then direct management attention to the areas with the clearest cash impact.
Use Contract Renewals to Control Supplier Cost Creep
Autumn is a sensible time to prepare for year-end budgets, common January price increases and upcoming supplier renewals. A 90-day contract calendar gives finance and operations teams time to act before renewal notices, auto-renewal clauses or out-of-contract rates limit their options.
Supplier creep happens when contracts are left untouched for too long. Inflation-linked uplifts, fragmented buying, old tariffs and poorly benchmarked terms can increase fixed costs without any better service. A supplier relationship that has not been tested against the market for several years should be treated as a margin risk.
Our procurement work focuses on evidence, not assumptions. That means consolidating spend data, comparing unit rates, reviewing contract language and challenging increases with a clear commercial case. Through FTSE 250-level procurement leverage, we can secure savings of up to 60% in suitable cases. Results will always depend on the existing contract, usage profile, market conditions and supplier terms.
Priority areas commonly include:
- Energy and smart meter arrangements
- Telecoms, mobile contracts and connectivity
- Insurance, business rates and payment terminals
- Courier, shipping and recurring software services
Lower Payment Costs and Get Paid Faster
Payment mechanics have a direct effect on cash flow. Card payments are familiar and convenient, but interchange fees, scheme charges, processor mark-ups, settlement delays and chargeback exposure can reduce the amount received from each sale. For businesses processing meaningful monthly volumes, a small reduction in payment cost can improve margin quickly.
Open banking can be a practical option where it suits the customer journey and payment model. It can support faster settlement, lower transaction fees and reduced chargeback exposure compared with traditional card payments. Through an integrated approach, we can help suitable businesses access sub-1% transaction fees, instant settlement and zero chargebacks.
The lowest headline fee should not be the only decision point. We assess customer payment preferences, checkout performance, recurring payment needs, reconciliation work, settlement timing and finance-system integration. A single integration supporting more than 100 payment methods may reduce complexity, but the right arrangement must match the way your customers buy and the way your finance team manages cash.
Remove Manual Friction From Order to Cash
Manual processes often add hidden days to the order-to-cash cycle. Invoice creation in spreadsheets, incomplete customer records, separate sales and accounting tools, or slow internal approvals can all delay collection. They also create errors, make credit control harder and add recurring admin to already stretched teams.
We advise mapping the full customer process, from lead and quotation through to order, invoice, payment and renewal. Look for points where information is rekeyed, records do not synchronise or a team waits for an approval before moving work forward. The first technology priority should be the change that shortens debtor days or removes repeated admin.
A service business with separate CRM, booking and accounting platforms may struggle to invoice promptly because job completion details do not reach finance. Connecting those processes can trigger invoices automatically, issue payment reminders and improve reporting visibility. This is not technology for its own sake. It is a practical way to release cash and give teams a clearer view of what is owed.
Turn Cash Flow Improvement Into a 90 Day Plan
- During the first 30 days, establish the baseline: review aged debtors, identify the largest supplier commitments, map payment fees and create a contract renewal calendar.
- From days 31 to 60, benchmark priority agreements, assess payment processing economics, challenge avoidable increases and identify the process gaps delaying invoicing. Assign clear ownership across finance, operations and commercial leadership.
- During days 61 to 90, implement the highest-confidence actions and track realised results against the original forecast. Monthly reporting should keep gross margin, debtor days, supplier spend and payment costs visible. A focused review of the five largest cash and margin risks will usually produce better decisions than a disruptive attempt to examine every line of spend at once.
Turn Cost Control Into Measurable Margin Gains
Digital Media Technology Solutions helps leadership teams identify the supplier costs, payment fees and operational inefficiencies reducing EBITDA. Our cash flow improvement consultancy combines FTSE 250-level procurement leverage with practical implementation support. For a focused review of your largest cost and margin opportunities, contact us to arrange a conversation with our team.
