With the current economic crisis, managing Cash Flow is more important than ever.  Whether your business has been impacted or not, these recommendations will help keep your company cash-flowing regardless of where you are in the business cycle.

The Goal is Not Profit

The goal is to create a positive cash-flow over the long term.  You can be profitable and have negative cash flow.  Your goal is to manage the flow of money in and out of your business.  Then you can make sure that revenue is greater than expenses.

Regularly Project Cash Flow

Have two projections: short and long term:

• 13 Weeks: Long enough to understand your short-term needs, but short enough to not lose focus. Constantly roll ahead
• 12 Months:  Helps determine impact of financial decisions

Look for Other Cash Generators

Don’t stop at revenue and cost of goods sold.  There are other areas that create or save cash:

• Sell equipment that will not be needed
• Put off buying equipment, instead lease or rent
• Look at selling a part of your company or borrow
• Slow down paying bills
• Factor your Invoices

For companies that have accounts receivable but are cash poor, factoring is an efficient solution to slow cash flow. American Receivable Corporation is a Top-Rated factoring company with a simple application process that funds new customers in 2 to 3 days.  This fast turn around is made possible by the original owners focusing on their client’s needs. Something not possible at a factoring company owned by a bank or a Wall Street hedge fund.  Factoring with American Receivable provides the benefits of positive cash-flow so you can take on bigger projects without the fear of running out of money. 

Reach out to  Jack Stieber or Brad Gurney to keep your cash flow positive at 1-800-297-6652 or complete our quick application form.