# Why Companies Should Collect at Least 100% of Their MRR in Cash Each Month A critical financial strategy to secure your cash flow. - **Source:** [SaaStr](https://www.saastr.com) - **Published:** 2026-07-24 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/c75c8b8c-1778-4130-989e-f7b9698640b1 ## The Importance of Cash Collection For B2B startups, cash collection is vital for healthy operations. Especially, unpaid invoices from large clients and service contracts can severely impact cash flow. Therefore, aiming to collect at least 100% of Monthly Recurring Revenue (MRR) in cash is crucial. ## Invoice Tracking Issues Many startups neglect invoice tracking after setting up payment systems. Over 50% of customers delay payments on terms like 'Net 30' or 'Net 60,' risking cash flow. Without follow-up, unpaid invoices can lead to financial strain. ## The Advantage of Annual Deals Annual prepaid contracts help companies collect over 100% of MRR upfront. Converting monthly subscriptions to annual plans and renewals also strengthens cash flow. These strategies enhance financial stability. ## The Impact of Commission Payments Paying sales commissions on uncollected cash can drain a company's bank account. For example, a startup collecting only 60% of MRR may net just 50% after commissions. This significantly weakens cash flow. ## Steps to Improve Cash Flow To boost collections, companies can hire a part-time collections specialist. Paying commissions upon cash receipt aligns incentives. AI-powered tools can automate invoicing and reminders, improving efficiency. ## Conclusion and Takeaway Achieving a 110% cash collection rate extends a company's financial runway. A startup collecting 110% of MRR can have 18 months of cash, while one at 60% may only last 6-7 months. Prioritizing collections is essential for sustainable growth. ## Sources covering this story - https://www.saastr.com/you-should-be-collecting-at-least-100-of-your-mrr-each-month-in-cash-ideally-110/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._