For a small business, cash flow is priority number one. Cash flow management will make or break your business. In fact, 90% of small businesses that fail do so because of poor cash flow. How will you know if you have cash flow problems, and how can you solve them?
One big problem that leads to cash flow issues is short-term loans. Three to eighteen-month term loans and merchant cash advances are easy to qualify for, so many small businesses turn to them to help themselves grow. If you’re not careful, though, they can start taking big bites out of your cash flow. To avoid this, you should try refinancing some of your short-term debt. Slow-paying customers can also be a big issue for burgeoning small businesses. When you enter a relationship with a customer, you need to be up front and put your payment terms in writing, and have them sign it. If a customer comes into a relationship knowing what’s expected of them, they’re much more likely to live up to it. Find out about more issues that cause cash flow problems and what to do about them below!
Read the full article here: 3 Signs Your Cash Flow is in Trouble