Business owners sometimes confuse a profitable business with a business that has positive cashflows or liquidity. Profitability relates to the ability of an enterprise at generating surplus (i.e. earnings). On the other hand, a company with positive cashflows is an enterprise that generates enough cash on collections to cover cash needs and to reinvest cash into operations, growth and investments.
Most business owners do not keep track of their cash needs and sometimes end-up borrowing at a high interest rate to cover short-term cash needs (credit cards, hard-money lenders, etc), which is not the proper way of planning for cash outflows.
Our cash management service allows you to...
know when, where, and how your cash needs will occur.
know what the best sources are for meeting your additional cash needs.
- be prepared to meet these needs when they occur, by keeping good relationships with bankers and other
creditors.
The starting point for avoiding a cash crisis is allowing us to develop a cash flow projection for you. We
can help you develop both short-term (weekly, monthly) cash flow projections to help you manage daily cash, and
long-term (annual, 3-5 year) cash flow projections to help you develop the necessary capital strategy to meet your
business needs.
We also prepare historical cash flow statements to help you gain an understanding about where all the
money went.
Creating an accurate cash flow projection is just one of the many cash management services we provide. You also
get...
Help obtaining an appropriate line of credit
Cash collection acceleration techniques
Proven effective collection policies
Proven effective payment policies
- Help obtaining the maximum rate of return on your idle cash
