Archive for cash flow

When the economy is slow, money is not rolling in then how are businesses supposed to cover daily operating costs?  A small business loan will assist in getting your company through these difficult times.  However, it is tough to measure if you own a business that has never been through such rough times before.  Receiving financing to cover working capital is one means to ensure you are ready and able to continue functioning even if your business is temporarily slow.

Working Capital Covers You Until Economy Bounces Back

Let’s say you own a pizza restaurant.  You have specialized ovens, restaurant software running on computers to put in orders, drivers, cooks, refrigerators, vendors and other expenses to cover.  What happens if the business decreases due to the economy?  People are not eating out as much.  However, you still need to pay rent and cover the costs mentioned above.  How are you going to do it if you do not have additional funding?  There is no cash flow coming through the business.  Therefore, you need to look at external options.  Check out working capital loans, business loans and other available answers to the solution.

Working Capital is a No –Hassle Short-Term Answer

Working capital is a way to ensure your business remains open even during sluggish economic times.  It covers all the costs until you are able to get back on your feet 100%.  It also helps your employees realize that the problems are just temporary and keeps everyone striving to continue to do their best.  You want your employees to realize they have stability and working capital is a way to provide that until things improve.

Talk to a professional today.  Find out what options are available in maintaining your business and keeping things running smoothly.

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May
05

How to Manage Your Cash Flow

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One of the most important aspects of running a small business is keeping an eye on your cash flow.  You cannot operate a business without being able to handle, manage, and keep track of the incoming and departing finances.  Here are some easy rules to follow making sure you know where you stand with your business expenses.

Provide Hassle-Free Payment Options

To keep your businesses operating smoothly offer your customers easy solutions regarding how to pay.  For instance, offer payments via phone and online.  This way if a customer is unable to enter your offices there is still flexibility in means to pay.  It encourages clients to pay on-time and continue doing so.  As a result, your cash flow does not reach a stopping point.  There is no hassle involved.  No excuses claiming the check is in the mail.  By keeping it simple, clients pay ensuring your cash flow does not end.

Run Credit Checks

Do you allow clients to have business accounts and pay after a certain amount or date?  If so, you need to rethink your strategy.  For what happens if the client never pays and you are the one stuck with a debt or overdue balance for services rendered but payment never received?  Prevent this from occurring by conducting credit checks.  It is a way to protect your small business and be certain you end up with more money going out than coming in.

Conduct check points with your cash flow through the entire process.  Be certain the links directly connected to your cash flow are working properly as the above suggests.  If you still need additional funding talk to an unsecured business loan professional today.

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It is common for headlines to state how small businesses are closing, in foreclosure and filing bankruptcy.  But have you ever thought about how to benefit from a recession?  Small businesses do have advantages during a recession over the competition and here are a few of them listed.

Rent, Products and Services Come Cheap

During a recession, the real estate business is in the ditch.  Thus, you are able to find office space available at a discount.  In addition, big businesses are going out of business.  Therefore, there are office equipment, supplies and furniture on clearance making it possible to expand your business without spending too much money.   These expansion costs become affordable allowing your business the opportunity to grow without breaking the bank.

Big Businesses are Filing Bankruptcy

In the midst of a recession, too often big businesses are closing their doors.  If one happens to occur, that is your competition, then it is an opportunity to pick up additional customers.  The clients have to go somewhere.  Hence, why not guide the clients straight to you.  This is a chance to build your business, develop new clientele and earn further profits.  Do not let it go to waste.  Use it to your full advantage.

New Market Means Additional Cash Flow

When economic times are tough, successful businesses are the ones who closely examine the demands and needs of the changing financial situation.  For example, if you are a restaurant slow on business, offer a downsized, quality, delicious menu with affordable pricing.  This will grab the attention of your target market and bring extra business to the table.

There are many upsides to running a small business during tough economic times.  It is just a matter of finding the right angles, looking at the situation from various perspectives and discovering the perfect, moneymaking niche suitable for you.

If your small business needs additional financing, talk to a lender about an unsecured business loan.  It will get you back on your feet and operating efficiently in no time.

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