Cash Flow Problems

While every business is different, many companies share certain challenges in maintaining a healthy cash flow. According to a Discover® Small Business Watch survey, about 50% of small businesses have cash flow concerns.

We always hear business gurus saying “cash flow is king” — and it’s true, both in business and personal finance. When your business has ready cash on hand, your bills get paid on time. Plus, you are positioned to take care of unexpected needs and opportunities, whether they are equipment repairs or expansion. When your reserves are low, your business and livelihood are in danger.

Let’s take a look at a few common cash flow challenges your company could be facing:

  1. If you don’t have sufficient funds to pay your employees on time, every time, you risk losing the lifeblood of your business. This can often be a company’s biggest – and most time-sensitive – monthly expense.
  2. Rent or mortgage payments. Whether your business resides in a high-rise office complex or a warehouse, you can’t afford to skip a monthly payment for your workplace.
  3. Equipment leases or payments. You may be making payments on a small fleet of trucks or leasing a copier by the month – nearly every business has critical equipment expenses.
  4. Insurance, taxes, licenses, and other fixed costs. Getting behind on business insurance (property, liability, and other types of insurance) and taxes (payroll, federal, state, and other taxes) can close your doors.   
  5. Poor collection on your receivables. Both large and small companies can struggle with uncollectable debt, either because they didn’t have all the information they needed on their customers’ credit histories or they don’t have the resources to follow through on collections.

Fortunately, there’s an easy, fast, and debt-free funding solution that can help with each of these cash flow challenges: factoring. When you factor your accounts receivable, you receive money upfront on your invoices – ready cash you can use for payroll, rent, equipment, and those critical fixed costs of doing business like taxes and insurance. In addition, your factoring company will take the burden of credit checks and collections off your shoulders with professional experts who will help you significantly cut down on uncollectable debt.

When you’re ready to meet these common cash flow problems head-on, call on Interstate Capital as your partner for business success. Their experienced specialists can customize a factoring program for you and get your funds to you fast.