Cash flow problems are a common challenge for businesses. However, as difficult as they may seem to escape, there are many banking and lending solutions businesses can take advantage of to improve cash flow, meet obligations and maintain or grow operations.
Consider what assets you have, or how you can improve billing
A range of factors affect cash flow. These include not only your own financial performance as a business but also seasonality and timeliness of customer payments. Finding the right solution depends on addressing the issues at play.
While some companies may not struggle with late-paying customers, those that do should overhaul their internal processes to focus on effective and efficient billing. Accounts receivable has to be streamlined and optimized to improve cash flow. Make sure you send immediate invoices and have step-up collection procedures.
For a banking solution, consider whether an asset-based loan or equipment leasing agreement makes sense for your organization. Your stock of inventory may be leveraged to meet surprise expenses, for example. Otherwise, a leasing agreement could help you avoid a prohibitive upfront cost to securing essential equipment needed by your business.
Want to learn more about loans and lines of credit to improve cash flow? Download our eBook "Strategies for liquidity: How to increase cash flow in business" today.
This information is provided for general awareness purposes only and is not intended to be relied upon as legal or compliance advice for your business.
This article is provided for informational purposes only. While the information contained within has been compiled from source[s] which are believed to be reliable and accurate, Comerica Bank does not guarantee its accuracy. Consequently, it should not be considered a comprehensive statement on any matter nor be relied upon as such.
