Cash flow problems don’t wait, and neither should you. Here are four real-world steps you can take today to get control, avoid disaster, and buy your business the breathing room it needs. Simple, fast actions—built for manufacturing businesses, not finance textbooks.
When cash gets tight, most business owners don’t need more theory—they need actions they can take before the day ends. If your manufacturing business is feeling the crunch, the worst thing to do is freeze up or try to “ride it out.” Cash flow issues snowball quickly, especially when payroll, suppliers, and production costs hit all at once. This isn’t about panicking—it’s about acting fast and smart, with the right moves that can make a real impact within hours or days, not months.
1. Stop the Bleeding: Get Clear on What’s Going Out Right Now
The first move is not about chasing revenue or applying for a loan. It’s about stopping the cash leaks you may not even realize are happening. Before you can improve cash flow, you need to know exactly where the money’s going. This doesn’t require a financial degree—just discipline, focus, and a printer.
Start by printing out or pulling up your last 30 days of expenses. Every bank transaction, every card charge, every vendor payment. Then sort those expenses into three buckets:
- Must-pay: These are non-negotiables. Think payroll, rent, electricity, key materials.
- Delay-if-possible: These are things you may be able to defer or renegotiate. Think software subscriptions, some supplier invoices, or less urgent maintenance work.
- Cut-immediately: These are the non-essentials. Think unused licenses, trade publications you don’t read, or that “temporary” consultant you’ve kept on retainer for six months.
What this exercise does is give you clarity—and with clarity comes control. One manufacturer we spoke with—a small shop making aluminum die-cast parts—discovered $2,000/month going to a vendor management platform no one had logged into in over 90 days. They also noticed overlapping digital tools between operations and finance teams. Cutting and consolidating those alone saved $3,800 in one day. Not bad for an hour’s work.
Also look hard at variable costs. If overtime is creeping up, pause it. If you’re ordering materials in bulk “just in case,” pull back. One hypothetical example: a packaging supplier was ordering plastic film in large quantities to get better pricing. But when they actually looked at usage vs. inventory, they found over $20,000 of slow-moving stock—tying up cash that could have been put toward critical supplier payments or staff payroll. They switched to smaller, more frequent orders even at slightly higher per-unit prices, and immediately unlocked working capital.
The goal here isn’t to optimize every dollar—it’s to stop the bleeding fast. You’re not cutting corners, you’re buying time and flexibility. When cash is tight, you need runway—and that means trimming every non-essential dollar that leaves your account. Don’t wait for your accountant to catch it next month. You know your business best. Trust your gut and move now.
2. Talk to Your Top 5 Customers Today—And Offer Fast-Pay Incentives
The fastest way to bring in cash isn’t always to sell more—it’s to accelerate what’s already owed to you. If you’ve got customers with open invoices or outstanding balances, this is the time to pick up the phone. Not to chase or pressure, but to offer something that benefits both sides: a discount or bonus for fast payment.
Call your top five customers directly. Not email. Not a payment reminder through the portal. Call. These are the customers who like you, trust you, and probably rely on you. Let them know you’re tightening up cash flow and that you’re offering a small percentage discount—say 3–5%—for payment within 48 or 72 hours. This isn’t a sign of weakness. It’s a smart, proactive business move.
For example, a hypothetical sheet metal fabricator in Chicago had $90,000 tied up in receivables. Instead of waiting for net-30 or net-45 terms to expire, they offered a 4% discount for any invoice paid within 3 business days. Three out of their top five customers took them up on it, and they collected over $40,000 in just two days. That money was used to cover payroll and buy critical raw materials that were at risk of being delayed due to unpaid supplier invoices.
If you’re nervous about setting a precedent—don’t be. You’re not offering this to everyone. Just your biggest, most dependable partners. And be clear: this is a temporary offer tied to early payment, not a permanent discount. Also, make payment frictionless. Offer ACH, wire, even credit card if needed. Whatever gets the cash in the door quickly and keeps your relationships solid.
It’s worth remembering—your customers are running businesses too. Many will understand what you’re going through and appreciate the chance to get a deal while helping a supplier they value.
3. Talk to Your Suppliers Before They Talk to Collections
When cash is tight, you can’t ignore what you owe. But you also can’t afford to pay everyone right away. This is where a little humility and a lot of honesty go a long way. Call your most important suppliers—especially the ones critical to your production—and have an open conversation.
The key is to get ahead of the problem. Most suppliers would rather extend your terms than lose your business altogether or deal with chasing payment. But they’ll only help you if they trust you—and that trust starts with you calling them first.
One real-world scenario we’ve seen: a precision tooling manufacturer found themselves behind on $60,000 in supplier payments. Instead of going silent or making partial payments without context, they called their top three vendors, explained the cash crunch, and asked for flexibility. Two offered net-60 terms for 60 days. One even agreed to split a $14,000 invoice into four bi-weekly payments with no penalty. Why? Because they’d been a reliable customer for five years—and had the guts to communicate early.
If you don’t ask, you don’t get. So ask. But don’t overpromise—whatever plan you propose, make sure you can stick to it. And confirm everything in writing once you agree to new terms. This avoids misunderstandings and keeps trust strong.
Also, prioritize who you pay. If one supplier’s delay stops your entire production line, they go to the top of the list. Others, especially for non-critical materials or services, may be able to wait. Treat your key vendors like partners, not just bills to be paid.
4. Cut Dead Inventory—and Turn It Into Cash Fast
There’s a goldmine sitting in your warehouse—you just don’t think of it that way because it’s covered in dust and shrink wrap. Inventory that isn’t moving is doing nothing for your business. In a cash flow crunch, converting old or slow stock into working capital is one of the fastest and least painful moves you can make.
Walk your floor today and identify anything that hasn’t moved in 90 days. Raw materials, components, finished goods—if it’s sitting and collecting dust, it’s costing you. Then move fast:
- List it online (Facebook Marketplace, local industry groups, even Craigslist)
- Offer it to local manufacturers or job shops
- Sell at a discount to a wholesaler or auction it off
In one hypothetical example, a small automotive parts manufacturer liquidated $18,000 worth of outdated gaskets and hard-to-move connectors that were taking up space. They sold it at 40% of cost to a parts reseller who moved them through eBay. The money wasn’t pretty, but it came in fast—and paid for two weeks of production and utilities.
You can also look at unused equipment. If there’s a machine that hasn’t run in 6 months and isn’t mission-critical, consider listing it. Even if it’s a $5,000 sale, that’s $5,000 more than it’s doing for you now. The key here is speed. You’re not trying to squeeze every dollar—you’re trying to buy runway.
Remember: the longer inventory sits, the less valuable it becomes. Cash in your account buys you flexibility and survival. Old stock does not.
3 Clear and Actionable Takeaways
1. Don’t wait to act—cash problems get worse with time. You’re not overreacting by addressing this today. You’re buying your business more time, control, and optionality.
2. The phone is your best financial tool right now. Call your top customers. Call your key suppliers. Conversations lead to solutions faster than dashboards or spreadsheets ever will.
3. Focus on what puts cash in your hands quickly. That means cutting what’s not essential, selling what’s not moving, and collecting what you’re already owed. Cash buys time. Time buys you choices.