“An early warning sign of a cash flow problem is when your business revenue is fluctuating or has recently fluctuated by about 20 percent…
Later state warning signs include NSF (not sufficient funds), a series of missed or nearly missed payrolls and accounts payable (AP) vendors that put you on credit hold."
What are Some Signs of Business Cash Flow Problems?
Cash flow problems can happen when a business does not have enough cash assets to cover all of its liabilities. (debt payments, AP vendors, operational expenses, etc)
When cash outflows exceed cash inflows, businesses cash flow suffers and the business may struggle to pay debts and other expenses.
Net cash outflows do not necessarily indicate that a business has a cash flow problem. It’s common for businesses to experience a net cash outflow when making large payments or experiencing seasonal business fluctuations.
Cash flow becomes a problem when cash outflows exceed cash inflows. Businesses typically use up its cash reserve and can no longer meet all of its liabilities.
Cash flow problems can arise from high debt payments, low-profit margins, invoice timing and collecting payments or over-investing in inventory or capacity.
BUSINESS DEBT & CASH FLOW SOLUTIONS
Bernarsky Partners LLC is a business financial services advisory firm comprised of finance professionals with extensive industry experience offering Business Debt Solutions.
Some of our Business Debt Solutions include:
2. RESTRUCTURING BUSINESS DEBT
4. BUSINESS CASH FLOW ANALYSIS
Setup a free consultation call with us to review your business debt and cash flow situation, business goals and to discuss Business Debt refinancing and restructuring options.