Every business goes through its highs and lows. Good cash flow keeps a business on its feet, bad cash flow sinks it. No matter how great your business model is, how profitable you are or how many investors are interested in supporting your business, you will not survive if you can’t manage your company’s cash flow.
As a business owner, if you are experiencing cash flow problems, tax debt, winding up applications or penalties – you should look to avoid the following four common scenarios:
Unorganised books
The only way to completely understand your cash flow situation is by keeping your books up to date using either an accountant or accounting software.
Understandably, we often see new businesses put their bookkeeping to one side whilst caught up with the chaos and huge workload of starting up a business. It’s critical not to put this off for too long, as troubling times lie ahead for those with disorganised bookkeeping.
Overdue receivables and/or bad debts
One of, if not the most damaging cash flow scenario’s are unpaid invoices from clients. Failing to act on your unpaid invoices often does much more harm than good and you could be on your way to a dangerous cash flow situation.
Bad debts are amounts owed by customers that can’t be recovered, and can have severe consequences (especially for new businesses) if a credit control system is not in place. A credit control system is a process a business has in place to recover money owed by its customers – we always recommend your business has a process in place.
No cash flow forecasting
If you haven’t already, set yourself some realistic expectations for future sales. This way, you will be able to gain an idea of how much money your business is going to require to survive.
A cash flow forecast will help you tack your inflow of revenue and outflow of expenses during a period of time. This allows you to anticipate when you’re likely to have to have more money going out than in, and help you prepare for those difficult months.
No available equity
Hiccups in cash flow are a business reality. It happens to every business and there will be a time where it happens to yours. If your company works from a zero account balance, one slow month often leads to disaster. It’s important to have safeguards set up to avoid these scenarios, and it’s important to know what is available and who can help. There are many options available, but to avoid government penalties you should look to the bank or a non-bank lender to assist you through the hard time.
How can we help?
Corporate Guardian can help you understand your cash flow situation, and offer you solutions so you can resume operations and continue trading. We can offer you business loans if funding is urgent (approving loans within 24-48 hours), negotiate payment plans with the tax office or creditors and even restructure and recover your business. If you would like a free assessment of your situation without obligation, fill in the short enquiry form below and one of our consultants will be in touch shortly.
Every business goes through its highs and lows. Good cash flow keeps a business on its feet, bad cash flow sinks it. No matter how great your business model is, how profitable you are or how many investors are interested in supporting your business, you will not survive if you can’t manage your company’s cash flow.
As a business owner, if you are experiencing cash flow problems, tax debt, winding up applications or penalties – you should look to avoid the following four common scenarios:
Unorganised books
The only way to completely understand your cash flow situation is by keeping your books up to date using either an accountant or accounting software.
Understandably, we often see new businesses put their bookkeeping to one side whilst caught up with the chaos and huge workload of starting up a business. It’s critical not to put this off for too long, as troubling times lie ahead for those with disorganised bookkeeping.
Overdue receivables and/or bad debts
One of, if not the most damaging cash flow scenario’s are unpaid invoices from clients. Failing to act on your unpaid invoices often does much more harm than good and you could be on your way to a dangerous cash flow situation.
Bad debts are amounts owed by customers that can’t be recovered, and can have severe consequences (especially for new businesses) if a credit control system is not in place. A credit control system is a process a business has in place to recover money owed by its customers – we always recommend your business has a process in place.
No cash flow forecasting
If you haven’t already, set yourself some realistic expectations for future sales. This way, you will be able to gain an idea of how much money your business is going to require to survive.
A cash flow forecast will help you tack your inflow of revenue and outflow of expenses during a period of time. This allows you to anticipate when you’re likely to have to have more money going out than in, and help you prepare for those difficult months.
No available equity
Hiccups in cash flow are a business reality. It happens to every business and there will be a time where it happens to yours. If your company works from a zero account balance, one slow month often leads to disaster. It’s important to have safeguards set up to avoid these scenarios, and it’s important to know what is available and who can help. There are many options available, but to avoid government penalties you should look to the bank or a non-bank lender to assist you through the hard time.
How can we help?
Corporate Guardian can help you understand your cash flow situation, and offer you solutions so you can resume operations and continue trading. We can offer you business loans if funding is urgent (approving loans within 24-48 hours), negotiate payment plans with the tax office or creditors and even restructure and recover your business. If you would like a free assessment of your situation without obligation, fill in the short enquiry form below and one of our consultants will be in touch shortly.
