Commodity hikes cause cash flow problems

The rising price of commodities is causing financial problems for many small businesses, which may be battling to make payroll and pay vendors.

Some firms are even being forced to raise prices, a tactic which can be a risky prospect in this economy, when customers are searching for the best deal possible.

"I have to gauge how much I can increase prices, make sure I am not overcharging and hope I can pay my bills and stay in business," Lynn Schurman, a small business owner from Minnesota, told Business Week.

Oil and gas costs are a major culprit affecting firms' bottom line, as any company that transports or receives goods will attest.

In fact, manufacturing bosses recently told Western Michigan Business Review that increases in energy prices were putting pressure on all parts of the supply chain.

Manufacturing companies that are experiencing cash flow problems may want to consider seeking funding from a non-traditional lender, as many reports have indicated that bank business loans are growing more difficult to obtain.