Cash Flow Problems Can Kill Your Business- How to Avoid That

In a recent study by a major U.S. Bank, it found that over 82 percent of small business failures are due to lack of access to working capital or in some cases poor cash management. To prevent this from happening to your business, here are some things to remember.

Profits are accounting, not cash. And accounting is a lot more creative than you think. You can't pay bills with profits. You can make profits without making any money.

Growth uses cash. Sometimes the best of times can be hiding the worst of times. Yes, of course you want to grow; we all want to grow our businesses. But be careful because growth costs cash. It's a matter of working capital. The faster you grow, the more financing you need.

Slow times devour cash. In this economy, not all that many small business owners and retailers are on high growth curves- rather, business is either holding steady or down, and for many retailers slow or off seasons are approaching. While there are some costs you can trim, there are many fixed costs that you incur regardless of the number of customers you have. In the past many retailers have used profits in busy times to carry them through the leaner times- knowing that things will pick up shortly or there friendly banker will help them out when needed.

In today’s economy, over 90% of small businesses that apply for a bank loan are rejected.
Working capital is your best survival skill. It's either money in the bank or access to credit or loans that make up your working capital. If you have enough money in the bank, or access to lines of credit already in place, congratulations- but make sure they are still viable.

Make sure the working capital you think you have lined up is still lined up. Many small business owners have used home equity lines of credit or their personal credit cards as a source of working capital. Recently, banks have begun arbitrarily reducing the credit limit on lines of credit, and credit card companies have been doing the same with credit limits on entire segments of credit card holders. And, doing this with NO prior notice.

If my bank says no, what options do I have to get working capital. There are options available, but remember that banks are becoming much more difficult as a source of working capital for small businesses. We have a free e-book “10 ways that small businesses can get working capital in today’s economy” that you can get by emailing dave@quickcash4biz.com.

A great alternative source of working capital- unsecured at that! It’s ironic in this day of tight credit, especially for small business owners, that one of the least-known, secret ways to receive financing for small businesses is probably their single best way to obtain needed working capital. But, the secret is out- the financing method is called a credit card advance, and the solution is RapidCash from http://www.quickcash4biz.com/.

Any small business that accepts Visa/MasterCard as methods of payment can actually receive working capital/cash today in exchange for a portion of their future credit card billings on a discounted basis. This allows the small business owner to receive a lump sum of cash today, without incurring the debt that a bank loan, a credit card, or other types of credit demands. Credit card advance allows a small business owner to "sell a future asset at a discount", their future credit card sales. Quickcash4biz provides working capital for small business owners that in today’s tight credit market have not had success applying for additional working capital with traditional lenders like banks.

Quickcash4biz is almost the anti-bank. With our RapidCash cash advance program, we can get approval usually within 48 hours and cash in the small business owner’s account typically within 7-10 days and with a minimum of paperwork and hassle.

§ You can be eligible for $3,000 to $300,000 per location
§ No signing personally or putting up collateral
§ No fee to apply or closing fees
§ No restrictions on use of cash
§ High approval rate

The cash advance is recovered automatically by taking a small % of each Visa and MasterCard transaction until the cash advance is repaid.

In today’s economy, its wise to make sure you have a source of working capital- even multiple sources---before you need it. Emergencies occur quickly, so always have a plan in place for acquiring working capital.