Hi, we’re back…well we’ve never been away, just haven’t been doing our blog!!
We thought it was about time we started it again so here we are. We pondered over what our topic should be and Alan, our Chief Executive, suggested we look at the definition of cash flow issues, well we had a laugh.
We googled ‘What is a cash flow crisis?’ and got the following:
“For a single business, a liquidity crisis occurs when the otherwise solvent business does not have the liquid assets (i.e., cash) necessary to meet its short-term obligations, such as repaying its loans, paying its bills and paying its employees”
Sounds rather long winded does it not!! Liquidity! Solvent!! Liquid Assets!! Really!!
We think it’s much more to the point to say that it’s:
When you’re running out of money and can’t pay your bills and/or maybe your staff too!!
Now that’s what we call a cash flow crisis!! We all understand that!!
We then googled ‘How can you avoid cash flow problems?’
But this time we very much liked, understood and agreed with the response:
Here’s 7 great ways to keep your cash flow in check and avoid cash flow problems:
- Keep a cash flow forecast. …
- Keep on top of payments. …
- Stay on top of stock management. …
- Stay friendly with lenders. …
- Access credit. …
- Tighten up on your outgoings. …
- Anticipate problems before they happen.
That’s all for now but we’ll be back soon with some exciting updates to our cashflow forecasting tool.