Cash flow management is a huge concern for many business owners.
One of the main reasons many businesses fail is the lack of funds for short-term needs. Unforeseen cash flow gaps can pose a dangerous threat to your company, especially when you’re just starting out.
You have a stable business growing at a moderate pace.
Suddenly, there’s an opportunity that could propel it to the next level. Maybe it’s a huge order from a retail giant, or a lucrative contract with a major manufacturer.
You jump at the chance, but then you face a dilemma: It usually takes 60 days for this new customer to pay its vendors, sometimes longer. You now have this huge unpaid invoice. Meanwhile, you require funds for other business needs. You need to pay your employees and procure supplies for other smaller jobs.
Online banking has improved our lives in many ways. We use it to manage our finances, pay our bills or make purchases.
If you’re a business owner, online banking can also be key to helping you quickly and securely finance your business. When applying for financing most lenders will need financial statements in order to underwrite your request.
Cash flow may be king, but what happens when a one-off emergency throws a wrench in your plans?
Even if your business is doing well overall, a theft or accident could lead to an immediate need for cash that you might not have in the bank. Or, on a more positive note, you could miss out on a great business opportunity because you don’t have enough money to buy supplies or pay the additional labor costs.
To further complicate matters, when you don’t have strong personal or business credit, quickly securing a line of credit or short-term loan can be difficult and expensive.