Category Archives: Cash flow

cash flow statements

When You Barrow, You Are Being An Optimist

When your company borrows money, you are assuming you will be able to use the funds, produce a surplus and then somehow return the funds (or show that you have them).

This holds true for any kind of loan, whether it is a bank line of credit, a term loan, equipment loan or a Merchant Cash Advance.

The two parties – lender and borrower – agree on the payback, collateral and degree of risk, all of which will be reflected in the interest rate.

Regardless, you are betting on the fact that “it is all going to work out all right”, and the majority of times it does (except for Merchant Cash Advances).

The ideal scenario is when you capitalize your company and use your own money to run the operations (and yes, perhaps have the company pay interest). That way, if things go wrong, you don’t owe anything to anybody. Like paying off your mortgage.

Factoring by the way is totally different. Factoring is not a loan. Factoring converts an asset you cannot use today (receivables) for one you can (cash).

Capital Solutions Bancorp can help provide you with the guidance you need to make the right decisions for your business!

If cash flow is what is taking sleep away from you, give Carlos Weil, CEO a call at 800-499-6179 x408.

Working capital management for business

What You Need to Know Before Asking for Financing

Before meeting with a prospect, you’d do your homework. You can look up the prospect on LinkedIn to study the person’s background. Look for connections and things you have in common. Go to the prospect’s company website and read up. Identify their mission and what problems they solve. Check out their clients to get an idea of what types of companies they serve.

Doing your homework can give you the upper hand in landing the prospect.

It can also help when you’re searching for working capital to scale your services and take on bigger opportunities that will grow your business.

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Question to ask for cash flow

Answer These 8 Valuable Questions to Boost Chances of Getting Money

These valuable questions can do more than help you get more working capital for your business. They help you check to see if your company is on track in meeting its goals. You may be thinking about growing your business by taking on bigger opportunities or adding products or services.

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You can get cash and save for a rainy day

Four Ways to Get More Cash for Your Small Business

Small businesses use their line of credit for cash flow to run daily operations and pay vendors, suppliers, and business partners. Unfortunately, a business line of credit is hard to come by. Even if a company already has one.

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Cash management lemonade stand

What You Actually Need to Know About Small Business Cash Management

A small business can make a profit and yet keep running out of money. Profit does not mean a business has positive cash flow. It’s natural to think a profitable business has cash on hand when profit means financial gain. However, financial reports can show profit without money in the bank.

Without cash, a small business can become insolvent, unable to pay its employees and bills. In “What I’m Still Learning About Managing Cash Flow” from the NY Times, Jay Goltz explains how a company can show profit without having cash on hand.

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Working capital management junk mail

This Is Not the Answer to Your Cash Flow Problems

I received a letter from a company that provides small business loans and financing. This company had been on my radar because of their less than stellar reputation.

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How to negotiate for small businesses

How to Actually Negotiate the Best Deals for Your Small Business

Cash flow is tight and small business financing is increasingly hard to come by without paying a high price. To ensure positive cash management, small business owners renegotiate more favorable terms on their contracts with suppliers, bankers, and landlords.

And most of them are willing to do it in exchange for ongoing businesses.

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Get paid and grow business

6 Ways to Stop Worrying and Actually Get Paid on Time

The simple act of getting paid can take up a big chunk of small business owner’s time while pushing stress levels to new highs. Aside from exploring funding options to help with cash flow problems, businesses can put safeguards in place to stop wasting time on chasing down payments. With the time they regain, they’ll be able to do more business development.

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Struggling to make payroll

Payroll Due? Not Enough Cash? Here’s What You Can Do

You’re a business owner and tomorrow is payday. The checks that are supposed to cover payroll haven’t come in. On top of that, you had to purchase materials with what little cash you had on hand. You just couldn’t wait until after payday to get the materials you needed.

This is a situation familiar to many small business owners. And there’s an easier way to solve it without upsetting employees, clients, and vendors.

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