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Posts Tagged ‘receivables’

Smoothing Out Cash Flow Could Save Your Business

A sad and oft-repeated truth is that half of all new businesses fail within the first five years. In fact, all too many fail in their first decade.

Although many factors contribute to business failure, a common culprit is poor cash management. Farmers, retailers, and car dealers are especially aware of seasonal fluctuations in cash flows. But to some extent all businesses, large and small, must deal with the uncertainty of fluctuating sales, inventories, and expenses. An owner-manager who engages in wishful thinking about profitability, who becomes lackadaisical about money flowing through the business, is often headed for disaster. By endeavoring to smooth out cash fluctuations, prudent managers keep their companies strong throughout the business cycle. (more…)

Is Your Business Getting Paid On Time?

Small businesses regularly fail. In fact, fewer than 50% are still operating within five years of opening their doors. Why is the failure rate so high? Often it’s because management hasn’t established and implemented a strong collection policy. Deadbeat customers walk away with goods or services for pennies on the dollar, either making a small down payment and then “forgetting” to pay or ignoring obligations entirely. (more…)

Alternative Finance Products – Can They Help You?

With the amount of available credit shrinking in recent times and financial institutions raising lending standards, more businesses are turning to alternative forms of finance to cover cash flow shortages and grow their businesses. Asset-based lending, factoring, invoice discounting, and merchant cash advances are a few alternative forms of finance that are becoming more popular. Although these forms of funding can help companies make it through tough times, business owners and managers need to be aware of their shortcomings.

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