AS a business owner, you understand that cash is the life blood of your business. It is a precious commodity that cannot be ignored and must be used effectively. Shortage of cash could be your first sign that your business is in trouble. You could be profitable, but without cash, you’re not going to have a business for much longer.
You may have enough cash in the business bank account right now to be able to make payroll and pay other necessary expenses in the next few months. But this doesn’t necessarily mean that you are in a good cash position. Look at your cash needs. If cash is an urgent issue, you need to “stop the bleeding”, so to speak, by taking a more pro-active approach in improving cash management. You may need to monitor cash that comes in and out of your business on a daily, weekly, or monthly basis.
As a debt relief attorney who helps individuals and small businesses, one major cash expenditure I see all the time is paying the business debts. When you see a struggling business that needs to allocate a huge chunk of its revenues to service monthly debt obligations, cash flow problems are likely to sink the business, it’s just a matter of time. The business finds it difficult to make progress when it is unable to put the money it earns back into the business to build it. Unfortunately, a lot of small businesses do not have the same access to funding sources that larger businesses do. It is difficult enough to succeed when you have adequate capital; without it, it is impossible.
Does your business need more time to pay creditors? Can payments be deferred for 30,60 or 90 days? How will this help your cash flow? Obviously, this requires short and long-term planning if the business is to survive. Effective cash management should always be top priority irrespective of business condition. Your creditors may not be happy to hear this but what is at stake here is your business survival, and so you must do what it takes. Managing the debts of your business can be the one thing under your control that you can implement in a matter of days. Do what you can to stabilize cash now before it’s too late.
I can do a thorough analysis of your business debt situation and give you my best recommendations. Since 1997, I have helped more than 5,000 individuals and business owners in finding the best solution to their financial problems.
For a free consultation, call Toll-Free 1-866-477-7772. Let me evaluate your situation and recommend possible options.
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NOTE: Due to the pandemic, consultations via phone or video are available. Questions? Email me at [email protected].
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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped over 5,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call RJB Law Offices at TOLL FREE 1-866-477-7772.