Cash is King, but who can help when it’s not?

cash

When it comes to business start-up finances we all know cash is king, but when it seems like cash is more like the court jester who do you turn to for help?

The bank? Well, they can be tough task masters and if they are willing to help the procedure can be too slow to be of any immediate help to you and your business.

Believe it or not having some credit cards up your sleeve (unused) can be very handy in these types of situations when cash flow is slow. These cards are are not for good times but for the needy times. If you go to a few providers you can add up quite a stash. Do remember though that applying for these credit cards will impact your borrowing power BUT when you are in need it’s quick to cover the gaps. It can also be very expensive if you have to draw cash but it can also be very cost effective if you use them to pay for goods and/or services and pay back before the due date.

Having a cash flow issue can be a nail in the coffin for small business but it can be avoided (or at the very least handled) and it all comes down to planning and keeping your cash as free as possible. There are ways to try and avoid this cash flow issue:

Try not to pay cash for things like vehicles or office equipment, renovations of even residual / balloon payments. Even if you have the cash stockpiled try not to use it for these types of big purchases. Don’t get me wrong it’s great to own them but the number of times I have had a client come back to me within a few months of making a big purchase like this and needing cash (quick) is surprising for me and frustrating for them. Stop and think what it costs to operate your business each month and try to build up that cash amount in reserves (or undrawn facilities, like credit cards). It’s not as easy as you might think but if you can get on top if cash flow life will become easier and simpler.

If I can help you with some of these things please call me or reach out via messages.

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