Is your cash flow lumpy? That sounds like a personal question, but you know what we mean. Customers like to keep their own cash flow in the black and so you wait 30, 60 or even 90 days for them to pay their bills.
So you’ve started your own company. Congratulations! Here’s a little advice if you are starting out:
1. Cash is King. It doesn’t matter how many customers you have, if they don’t pay you in a timely manner, you may not be able to pay your bills. According to the Small Business Administration, half of all start-ups fail within their first five years, primarily because they run out of cash.
When I got turned down for a business loan, I’ll admit I was a little hot under the collar. I may have said some things I didn’t mean, and meant a few I didn’t say. One thing I meant, and was about to do, was transfer all my deposits to another bank.
It’s pretty much the same all over these days when it comes to loans. Banks are limited in what they can and can’t do. But my banker went above and beyond to show me that she valued me as a...
In this era of Internet commerce, electronic deposits and remote deposit capture, customers expect businesses to fill their orders yesterday. So why should businesses wait 30 days, or more, to get paid?
Business is good, but with all your money either tied up in inventory or awaiting customer payment, you may find yourself with a cash gap. It’s probably not a big gap. Most small businesses could make do with $50,000, or less. But it’s big enough to lose sleep over,...