Accounts Receivable Financing – Hello Cash Flow
Many small business owners struggle to find a real solution to their cash flow problems. This can be particularly debilitating since consistent, reliable cash flows are the lifeblood of any successful business. If you’re in the unfortunate position of taking in less money than is going out every month, your business may benefit from establishing a relationship with a top accounts receivable financing company. Even if you aren’t in need of additional capital today, David Sederholt explains the value of being proactive in this Cash Flow Article:
“…most cash flow storms come on suddenly and it brings a sense of desperation or lack of control. It happens to most businesses at one time or another. If you work with a quality company that provides working capital, stick with them and build a relationship. If they know you, they will be there to help quickly when you call.”
In many cases, these “cash flow storms” can be anticipated and avoided with careful planning. While such storms are rarely welcomed, they can also be a positive indicator – signaling rapid growth. Regardless of which type of storm your small business is facing, an experienced Invoice Factoring Company can make all the difference. While providing access to working capital is our business, following are a number of steps you can take to avoid cash flow problems altogether.
Start Small, Start Slow
The majority of small business owners believe strongly in the products and/or services their company provides. They have a strong sense of pride which has been forged from years of dedication towards the goal of launching their vision, and rightfully so. Unfortunately, many entrepreneurs make the mistake of going too big, too fast. The result is that their startup costs quickly pile up during a time when revenues are low to non-existent. Remember, Rome wasn’t built in a day and running a successful business is much more akin to running a marathon than a sprint!
Budget, Budget, Budget
Even if you don’t know a single thing about real estate, you’ve probably heard that the three most important considerations are location, location, location. Well, if you’re serious about running a “cash flow healthy” business, then you must budget, budget, budget! By monitoring your working capital, you’ll develop insights into the timing of your cash flows, what drives them, and you’ll be able to use that knowledge to plan proactively. You simply can’t fix what you aren’t aware of, and the simple truth is that most companies can fix or altogether avoid their cash flow woes by taking budgeting seriously.
Stay Disciplined, Stay Lean
Oftentimes, a company will do all the right things when they start out. They typically avoid biting off more than they can chew by focusing on budgeting and cash flow forecasting. After some time and a taste of hard earned success, it’s easy for a business to slip away from the cornerstones of their success. Instead of staying disciplined, companies may make poor spending decisions that result in ballooning overhead costs. Our advice – don’t ever forget what made your company successful…stay disciplined, stay lean!
Accounts Receivable Financing
Even if your small business does everything right, it may find itself in need of immediate working capital due to rapid growth. Regardless of why your company needs additional cash, the good news is that accounts receivable financing is a quick and easy source of funding for many companies. If you’d like to learn more about why Orion Business Capital is your one stop financing solution, Contact Us now for a candid conversation focused around your business and it’s unique needs. Our single goal is to make your cash flow concerns a thing of the past.