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Small business owners face a mountain of challenges on the road to success. A commonality within these challenges is cash flow problems.
Here, we outline specific areas that usually lead to business cash flow problems and how you can take action to overcome them.
For any business, it’s essential to prepare a yearly forecast to avoid the risk of facing unexpected cash flow problems.
The main purpose for a cash flow forecast is to make it clear when you expect your cash to increase and when you expect to see it decrease so you can plan around this and cover unexpected costs when they arise.
It’s important to keep a close eye on your finances between suppliers as bad debts can be another factor leading to cash flow problems within a business. Introducing a credit control system to your business can help combat problems, something as simple as sending reminder emails and letters can help to jog people’s memories so they pay on time.
If you are a reasonably new business your main focus may not be on your book keeping as you will be concentrating on more important tasks to get your business off the ground and make it a success.
If you aren’t organised with your books from the beginning this can be the start of long standing cash flow issues for your business
Even if you’ve been established for many years, book keeping can take a back seat in your priorities. If you feel you don’t have enough time or knowledge to focus on your book keeping, consider outsourcing and using an accounting system to help.
There are lots of alternative finance options available to small business owners without the hassle or worry of approaching a bank. A business cash advance is a quick and simple solution to cash flow problems. With minimal paperwork, a cash advance allows you to access a lump sum upfront and repayments are then made as a small percentage of your daily credit and debit card turnover.
If you’d like to find out how an instant cash flow boost could benefit your business, our advisors are happy to help. Visit the website or call us on 0800 3777 402.