When Cash Is Tight: The Right Order of Cash Levers Before Cutting Costs

Rank every lever two ways: how fast it produces cash, and how hard it is to undo.

Fast and reversible, this week. Hold discretionary spend. Chase everything overdue. Invoice delivered work. Ask for deposits. None of it costs you anything permanent.

Slow but reversible, start today. Supplier terms, a facility, deferred capex. They take three to six weeks, so begin before you need them.

Fast but costly. Discounting for early payment, clearing stock below margin. Real options, but you are buying days with margin.

Slowest and hardest. Headcount, exiting contracts, selling assets. Said plainly: severance is cash out before it is a saving. In a crunch it is often the wrong first lever, even when it is the right long-term decision.

And protect whatever generates cash. Cutting sales or collections is not a saving.

Then stop waiting for the month to close. Run the cash flow weekly, set it against what actually happened, and you will see performance while you can still do something about it.