Cash Flow Strategies — business 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...

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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...

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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...

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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...

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7 Character Flaws That Rob You of Cash

business cash flow strategies

7 Character Flaws That Rob You of Cash

# 1 Your Ego Writes Checks That Your Business Can’t Cash   Starting and owning a business produces a special high and invites you to believe crazy things your ego says. To keep the high going and feed the beast that is the ego, you start buying things you cannot afford. Things like a new car, over-sized outdoor signage or new office furniture. A successful person might consider buying these things only after the business made a profit. And that same person only considers it. # 2 Your Ostrich Borrows Too Much Money Not being able to pay the bills hurts....

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