Cash flow can make or break a business. The bottom line may be beautiful, but if the cash isn’t flowing something isn’t working — and it may be you if something doesn’t change! But what can you do? Profit looks awesome, so why can’t you pay your bills? It isn’t too late to make some changes to ensure the cash dam breaks open and keeps flowing the whole year through.
Get a Grip on Receivables
It sounds so simple, but you could have a booming business, and if no one ever pays their bills you will be out of business in a heartbeat. One popular method of getting payment quickly is to offer a discount to those paying early or in cash. Another option is to turn accounts that are older than 90 days over to a collection agency, or to sell them to a factoring company. Either way you lose some money, but you have more than you would if you didn’t get them to pay at all.
The Line of Credit Bridge
Sometimes you just need a little cushion, and a business line of credit is an excellent one. This is a revolving loan that allows you to dip in and use what you need as you need it, making payments as you go. The interest rate and terms are usually better than a business credit card, and you can often pay with checks or a debit card just like a checking account. Biz2Credit.com can help you secure a business line of credit and other types of funding.
Financing is an excellent tool for starting, building, and growing a business. However, be certain that payments do not get to the point that they tie up all of your cash flow. If all of your cash is used making payments on debt each month the business is not going to thrive.
Cash flow is a huge building block of any business. Without cash, no bills are paid, no supplies are purchased, and no employees get paid. Getting receivables under control is the ideal solution, but sometimes financing is simply necessary.
Whether you need a startup business loan, a business loan for bad credit, minority business loans, business loans for women, or any other type of small business loan, Biz2Credit can help. Our network of over 1,200 lenders is sure to include the perfect lender with just the right products for your situation. Visit Biz2Credit.com today for more information.