Cash flow problems can absolutely cripple small businesses.
Without access to capital, companies not only have an incredibly more difficult time managing day-to-day operations, but they’re also unable to respond to new opportunities, develop new products and target new markets.
Despite this, cash flow problems are quite common in the small business world. In fact, recent research indicates that 50% of small- to medium-sized businesses (SMBs) routinely deal with shortages of cash. These gaps can be so significant that organizations are forced to rush to figure out where to find funds to meet payroll and settle their bills.
While cash flow problems can severely impede small businesses, the good news is that with proper planning, they can be avoided easily. With a proactive approach to cash flow, decision makers can get their financial houses in order, so to speak, benefitting from the peace of mind that comes with knowing the capital they need is always within reach.