Why cash flow is king
You also need to anticipate and forecast your cash flow cycle. Understand both the constraints that can be placed on you by key suppliers and the ramifications of expansion, and where that capital needs to come from. Anticipate what challenges key customers can throw at you with slow pay, disputes, etc. And always over-estimate the cash gap so that there will be no unpleasant surprises.
If you’re experiencing a cash flow crunch, or see one coming down the road, don’t hesitate to take steps now to secure working capital financing, including alternative financing vehicles like factoring, A/R financing and asset-based lending. Such vehicles may be the lifeline that helps ensure your business’ survival.
Tracy Eden is the National Marketing Director for Commercial Finance Group (CFG), which has offices throughout the U.S. CFG provides creative financing solutions to small and medium-sized businesses that may not qualify for traditional financing. Further information on the company and their services offered can be found at www.CFGroup.net and www.fvf.ca or e-mail firstname.lastname@example.org.