Avoiding the Cash Flow Crisis that Negatively Impacts Your Business

Business owners - beware some of the hidden surprises that absolutely hinder your business cash flow! Nine out of ten small businesses fail due to continued compromised cash flow. This is not rocket science but a fact, according to Dun & Bradstreet. Poor cash flow management is the leading cause of businesses closing their doors.

Inflows of cash need to be a priority in setting the tempo for the outflows of cash. It’s great to be able to discount your invoices, but only if you have plenty of cash on hand for the discount to make sense.

What do I mean?  Well, if you’re saving 1% on a $1,000.00 invoice that needs to be paid in ten days - it’s not worth it! You can use that capital for an extra 20- 35 days, depending on how you pay your creditors, for a multitude of operational purposes. CASH IS KING, and when your expenses exceed your cash flow, your business will undoubtedly suffer from the stress of it.

Many business owners think that profit is cash flow, but it’s not! It adds to the cash flow paradigm. Your balance sheet and your Profit & Loss may look great, but if you’re behind on your invoicing and your clients haven’t paid you, it will truly result in a cash flow crisis sooner rather than later.

Almost always, revenue isn’t realized until it hits your bank account, and by that time almost all monthly expenses have been paid, leaving you with either a small profit or maybe no profit at all for the month.

How can you mitigate these circumstances?

Forecasting can be a useful tool in obtaining a pulse on your business cash flow. Review your weekly sales and invoices to see what is expected to arrive in receivable collections that week. In many instances larger customers obtain better pricing based on their volume. Remember, price is important, but service and dependability are more important, especially if you’re servicing a niche market. Do not diminish your margin or you’ll be out of business before you know it!

There are many areas that can certainly influence a cash flow meltdown. Here are a few:

  • An inability to fund payroll properly some months can be a nightmare for business owners as they also must pay the tax liability along with funding the payroll. Once owners get behind on payroll taxes, it’s an unending battle to catch up.

  • Business expenses like insurances can also be very costly, but solid coverage for business owners is a necessity in today’s market. Be ready for growth but recognize that with growth there is always an expense.

  • Seasonality may also play a role in the economics of your business, leaving you with little inventory and not enough cash flow to purchase the goods you need at the proper time and price point to service your clients.

How Can We Assist?

Capital Biz Solutions can solve many of these compounded cash flow issues by finding the proper source of working capital for your business at the time you need it! We have multiple sources which are very effective in helping you achieve the right balance of cash flow in your business operation. So, if you’re searching for financing options, search no longer!  We let you focus on your business while we do all the heavy lifting for you. We invite you to try our services.

Please feel free to contact us when it’s convenient for you at (508) 864-7758.

We look forward to serving you!

Why Business Owners Are Seeking Alternative Financing

Today many business owners are turning to alternative financing resources other than their traditional bank. The reasons vary from being leveraged at their bank, not being able to qualify, and everything in between. There is a vast array of loan types out there, from bridge loans to commercial real estate loans, private equity funding, term and equipment loans, SBA loans of all types and MCA funding.

Very often, the process of a traditional bank can be extremely laborious, and the business owner can become bogged down with all types of documentation they must collect and send off to their assigned lender with a 60% possibility of obtaining a decline.

What’s a business owner to do?

I launched Capital Biz Solutions 4 years ago to assist business owners find the capital they need when they need it!

I’ve spent over 18 years as a Business Banker and Commercial Loan Officer, so I’m very familiar with the different loan processes and procedures. Prior to working in the banking industry, I owned a successful Food Service Company for over 20years. I understand the intricacies of owning your own business and how compromised cash flow can negatively impact your business.

How Can We Help?

We invite you to try our services. We work for you and advocate for you. You’re not in a box regarding your lending options and we make certain we find the best solution for you at the time of your loan request. The lending platforms range from Dental Acquisitions to Private Equity Funding. Capital Biz Solutions is able provide SBA funding, personal and business term loans, working capital lines of credit Commercial Real Estate loans and Cannabis Lending, just to name a few. We do not succumb to a one size fits all mentality regarding your particular loan request.

We have been hired to seek out traditional lenders for those requests that qualify for traditional financing.  We will interview certain banks based on the loan request to find the best rate, term and structure along with a good portfolio fit for the client. We’re able to do all the heavy lifting while you focus on your business and generate the revenue you need to keep your business moving. Why not leave the heavy lifting to us? We will obtain the capital you need to assist with the growth of your business today and for years to come.

Please call us @ 508 864-7758 for a free consultation or visit our website at https://www.capitalbizsolutions.com.

We look forward to serving you!!

Gene Amato CEO Capital Biz Solutions, Inc.