## Controlling Payments
Just as a firm accelerates collections, it should strategically delay cash outflows to improve liquidity.
### Key Techniques
| Technique | How it Works |
|---|---|
| Pay on due date | Never pay early; make payments exactly when due — not before |
| Use drafts or post-date cheques | Send cheques late (legally) to maximize outflow float |
| Estimate cheque presentation timing | Maintain only the required bank balance based on when cheques will actually clear |
| Outstation payments by mail | Send cheques by post to distant parties, using postal transit time as additional float |
### The Mirror Principle
> What you do to reduce float for collections, do the opposite for payments — maximize payment float.
Collections: Minimize float → Get cash faster
Payments: Maximize float (legally) → Hold cash longer