Is Your Business on Top of Its Cash Flow?

One of the most difficult aspects of running a business is staying on top of your cash flow.

While it would seem as though that may not be a problem since you have a historical pattern of turning a profit, that doesn’t mean that you will always have a positive cash flow.

Unfortunately, here is where Murphy’s Law seems to haunt you. It’s just those times when you think you’ve made it through another month without going into the red, something comes up and you suddenly realize your company doesn’t have the funds necessary to meet a need.

Most small businesses experience this dilemma from time to time and that is why you should always be thinking about staying on top of cash flow. One lapse and you could be in more trouble than you had ever imagined.

If you are experiencing one of those times when you don’t have enough cash on hand to meet a client’s larger-than-usual order or to repair a piece of machinery that decided to break now when funds are low, this is the time to learn about how to manage cash flow going forward.

Meeting Immediate Needs

Before getting into how to manage your company’s cash flow, the situation on hand needs to be dealt with first. Could it be that you have invoices outstanding and your customers are late in paying? Perhaps a series of mishaps ate your reserve money and now there is nothing left to meet yet another crisis in a long list. The bad news is, you haven’t enough money to meet this new expense. The good news is, there is money out there to take advantage of.

Have you considered invoice factoring that enables you to borrow against your accounts receivable? Sites like Become are able to match you with lenders who can advance money against those outstanding invoices.

Rather than search for invoice factoring lenders, use a search engine like they have which relies on AI to match your needs with lenders who offer this service. You need that money and you need it quickly, so don’t spin your wheels looking for the right lender. There’s no need with a service like this.

Understanding the Finer Points of Keeping a Positive Cash Flow

Arguably, invoice factoring is a quick fix for what ails your company; a Band-Aid, so to speak. Even so, that loan could make the difference between the life and death of your company, so it is a necessary move on your part.

However, in the long run, you should really take the time to understand all that goes into keeping your cash flow positive. As you have seen, sometimes a savings in reserve isn’t going to meet your needs if several issues arise at the same time. Much is written on the subject of how to manage your company’s finances and this is what you should be looking at going forward.

Just because you’ve met this crisis and lived to tell the tale about it, doesn’t mean that the next one won’t require a much bigger loan to tide you over.

Learn the difference between profitability and positive cash flow and you’ll begin to understand that those finer points are what you’ve lost track of. Learn exactly what positive cash flow is as compared to meeting your monthly expenses. In the interim, there’s that small business loan that can get you through this trying time and that’s where you’ll need to start.

Just don’t forget to take an honest look at how you got to this point to avoid a similar experience in the future.