Many large corporations have been devastated by a cash flow crisis that caused a major stir within the company. Avoiding these problems is easy when CEOs have a number of loyal customers and several different ways to come about cash flow. However, in many instances, that is easier said than done, especially in today's economy.

When large corporations have a solid cash flow it can help the company in several ways, including the ability to conduct accurate financial forecasting, act on opportunities for potential expansion and recruit top talent to become a part of the business. Understanding these perks, CEOs need to protect their cash life line. Here are some pointers from Fox Business on how to do just that.

Continue to bill customers
Large corporations often have a wide customer base and it can be difficult to keep track of every pending invoice. A good strategy to maintain available cash flow throughout the company is to bill clients frequently, and continually remind members of the customer base about late payments. Asking clients to pay each week or every other week will help CEOs and members of the accounting department get a better idea of the money they will be able to play around with each month.

Don't deal with problem customers
Every client is valued by large corporations, but those who fail to make payments or are consistently late replying to invoices may have to be let go. There are few things more bothersome to a business of any size than customers who are late on their payments. It can set a company back, potentially disabling the CEO from moving along with investments and growth strategies. Sales professionals are also irked by late payments, especially if their pay is based of commission.

Move forward with only top products/services
Today's economy makes it tough for many businesses of varying sizes to roll out an expansive suite of products or several services geared toward different customer segments. In order to combat any potential cash crisis, large corporations could consider reducing the number of products and/or services offered at the company, and stick with the ones that are bringing in the most revenue. Having a wide customer base is important to many CEOs, but sometimes it is simply not feasible to offer products and/or services to a number of diverse potential clients.

Operate with high profit margins
Many large corporations often have cash flow to fall back on in case the company suffers any down times or experience stagnant sales. However, some CEOs will operate on low profit margins, where one simple problem could set the business back for several months. It is always a smart strategy for CEOs and small-business owners alike to have some money set aside in case any problem occurs at their company.

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