Even the most stable and profitable businesses can experience temporary cash flow problems. These blips can cause serious consequences for a company – but they’re easy to avoid with the following tips.
1 Understand your cash management.
Before you do anything else, get to grips with your accounts. Look at your accounts payable and receivable, credit conditions and stock, and highlight any predicted shortfalls between income and expenditure. By preparing a realistic weekly or monthly cash flow forecast, you can highlight when you will need to borrow, whether via an overdraft, emergency loan or ongoing borrowing arrangement. (more…)