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.
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.
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.
Have you heard about payday loans? Chances are good you’ve heard nothing good about them. They trap customers in an endless debt cycle. You wouldn’t dare, right?
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.
Of course, you want to grow your B2B small business. That might be tricky to do if you’re like those businesses surveyed in Wasp Barcode’s State of Small Business Report. More than half of the respondents plan to invest fewer than 3 percent of their revenue on marketing. In this case, it should be no surprise why growing revenue is the No. 1 challenge for small businesses.
Are you working harder than ever, but still worried about working capital for your small business? If yes, you’re probably spending a lot of time trying to track down payments. It’s a real headache to contact your clients who haven’t paid their invoices.
Let’s face it, you can be profitable and broke. (Have you ever tried to make payroll or pay vendors with so-called profits?)
You don’t want to get into a position of paying your invoices late. This is a situation that needs to be remedied ASAP.
This is a true story. Names have been changed to protect the innocent and the guilty.
A prospect contacted me interested in my company’s services. We discussed the project and came to agreement on the scope and price.