Cash Flow Tips from Rieva:

  • Cash flow could be a problem for business owners. There are many unknowns – consumer demand, inflation, rising interest rates, potential supply chain issues, and finding seasonal help are all potential issues—and BIG issues for small businesses that rely heavily on holidays sales to meet their annual goals.
  • Look at your Q4 financials from 2020 and 2021. There were a LOT of financial obstacles in those years. Which ones did you get past? Which ones tripped you up? Did you have minor or major cash flow issues—and how did you solve them? 
  • Do you have access to credit, either a loan or line of credit? Make sure you have at least two options of tapping into credit should you need it for the holidays.
  • If you know that your cash flow is going to get tighter, CALL your creditors! Tell them your situation and ask for a payment extension. Many creditors will work with you if they understand your situation. 
  • If you extend credit, and your terms are net 30, you need to call your customer on day 31 (or even day 25 to confirm that payment will be sent). Don’t let net 30 becone net 60 or even net 90.