Cash Flow Strategies

How Trade Credit Insurance Can Help Your Cash Flow

business cash flow strategies

How Trade Credit Insurance Can Help Your Cash Flow

What is it? Trade credit insurance (TCI) is insurance that protects your accounts receivable should a customer not pay you due to default or insolvency. In some situations, the insurance company will assess the credit risk of your customer before agreeing to insure the transaction and help you collect the debt should the customer not pay by the due date. There are many types of TCI, and some policies specialize in protecting you when selling to foreign customers. AIG is a leader in TCI, so view their page here to see all the types of policies they offer. For small and...

Read more →


Cash Flow Strategies for a Seasonal Business

business cash flow strategies

Cash Flow Strategies for a Seasonal Business

Cash flow can be rough for seasonal businesses. I live in a college town (Gainesville, FL), and many of our restaurants receive most of their revenue during football season. Revenue drops further over the summer months when most students go home for break. If you have a seasonal business, these tips can help. 1 Develop and update each month a 12-month Cash Flow Forecast. 2 Keep a business savings account in a different bank than your operating bank account and deposit funds into savings during peak season. Then, per your Cash Flow Forecast, use those funds in off-season. Keeping your...

Read more →


Should You Borrow Money During a Cash Crisis? How to Make a Sane and Informed Decision

Should You Borrow Money During a Cash Crisis?  How to Make a Sane and Informed Decision

It’s easy to borrow money and many of us have done so at our peril. When you are in a cash flow crisis, you may not be thinking clearly, letting fear and panic drive your decision of whether or not to borrow money. Go through the below questions and decision trees to get a clearer picture of the reason why you need cash and how urgent the need really is. (Click on the graphic to make it larger.)

Read more →


How You Can Go Out of Business While Still Making Profit

business cash flow strategies

How You Can Go Out of Business While Still Making Profit

Cash flow has nothing to do with profit. Making a profit is the most important job you have as a business owner. Working to make a profit when you don’t have available cash is like playing football without ever getting to play offense. Your only chance of a score, and small at that, is when your competitor makes an error. You’ll never win the game this way. How can a business have profit but no cash flow? Unfortunately, it’s too easy to get into this position, and most of the time it’s because a business has too much debt service...

Read more →


Beware of Over-Engineering Your Cash Flow Solution - It’s Not That Complicated

business cash flow strategies

Beware of Over-Engineering Your Cash Flow Solution - It’s Not That Complicated

I’ve researched online resources to help you manage your cash flow, and I found 99% of the help out there makes it too complicated. For most of us, cash flow management for our businesses is not rocket science. The danger of over-complicated cash flow management systems is that you won’t use them. You won’t use them because it takes too much time to input the numbers and/or it’s so accounting-centric it’s like working in a different language. In my 25 years of helping small businesses with accounting, I find that most of you are not “numbers people.” You are successful...

Read more →