The Best Way to Finance a Business Cash Flow Emergency
As a business owner, staying cash-flow positive can be a constant challenge. Despite your best-laid plans, your operation may be just one equipment malfunction or slow-paying client away from disaster on the cash front.
The number one reason small businesses fail is a lack of cash, not a lack of profits. It would be best if you did good cash planning, and really understand the decisions and expenses in your business that can affect your cash. Your company may be successful but you might not have enough money on hand to order additional inventory or to provide the services necessary to support your customers. Operating cash flow is a crucial metric to tracking your success. Many entrepreneurs look at these numbers as an indication of how well their business is performing, as discovering any patterns or trends in the results can help business leaders address shortcomings or expand on strengths. So, how does one access funding when cash flow isn’t tracking with your success?