Your company already has all the cash it needs!

Guest post by: David Banfield
Become an Author

Free PDF Download
Support the crucial element - By David Banfield

Your company already has all the cash it needs!

If as a small business entrepreneur you have just been rejected by your bank for either a line of credit or an increase then you would probably argue with the statement above.

In most cases however the statement is probably true. Most companies usually have sufficient cash assets to meet their daily needs and in many cases enough to meet their growth needs.

As a manufacturer or service provider once you have ‘delivered’ your product or service you have a significant cash investment in that transaction. Your investment comes in many different forms such as inventory, labour costs, packaging, marketing, etc. All of these components have probably already been paid for by you-especially the labour content.

Regardless of whether you are a manufacturer or service provider at the point that you issue your invoice you have created an investment for your business. Unfortunately that investment wont solve next weeks payroll problem or other accounts payable demands. With a slow economy your customers are almost certainly taking advantage of your credit terms and stretching out ‘net 30’ as far as they can. Such action probably forces you to do the same with your suppliers. Unfortunately where the payroll is concerned there is no stretching possible.

The invoice that you created is, as we say an investment and the key is to unlock the value of that investment and turn it into usable cash flow. If your business was 100% ‘cash on delivery’ you would not have any cash flow issues-therefore the key to your cash shortage is simple-turn your business into a ‘c.o.d’ business. Simple-maybe not as it would require all of your customers to agree and make immediate payment to you.

The solution is to use an intermediary that can turn your business into a cash business without it having an impact on your customers and your relationship with them. Through the medium of invoice discounting your quality, current accounts receivable-those invoices that represent your investment-can be turned into instant cash.

Invoice discounting is a mature financials service that in many instances can be geared to the specific needs of smaller growing companies. You DO have all the cash you need-you just need to know how to unlock the investment

David Banfield

Rule #2 - Making Money In Business

Cash Management

CASH FLOW - You're Forgiven for Misunderstanding the Term!

Part Two: Build a Financially Strong Nonprofit with Cash Flow Management

How much cash does your business generate?

Why Exactly Is Cash Flow King? Avoid Business Rehab With Business Finance Financing Options

How To Work At Home With A Computer Taking Surveys

Understanding Business Cash Flow

Cash Advances For Small Businesses

Build a Financially Strong Nonprofit with Cashflow Management

Creating cash flow forecasts

Top Ten Tips for Improving Your Cash Flow

The Importance of Cash Flow

Internet Cash Flow-Finding A Cash Flow Business

Carrefour Plans To Enter Indian Market

Cash flow forecast software

Is the Lack of Cash Flow and Working Capital my firm’s Doomsday?

Cash Flow and Business Valuation

Inigo Montoya’s Guide to Cash Flow Financing . The Business Working Capital Loan demystified !

How to create positive cash to leverage lump sales cycles

Home > Small-Business-Loans > David Banfield > Your company already has all the cash it needs > Google +

Free PDF Download
Support the crucial element - By David Banfield

About the Author: David Banfield

RSS for David's articles - Visit David's website
David Banfield was named President of The Interface Financial Group in 1991. He has played, and continues to play a significant part in the successful development and growth of Interface as a franchise organisation. Interface was a pioneer in terms of successfully taking an established financial service and turning it into an international franchise opportunity. The company currently has operations in the US, Canada, New Zealand, and Australia. Prior to Interface, David held many senior positions in the banking industry both in Europe and North America. Immediately prior to his present involvement with Interface he was Vice-President of Walter E. Heller Financial Corp. taking charge of their national marketing activities throughout Canada.
Click here to visit David's website.

More from David Banfield
Get Working Capital

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Your company already has all the cash it needs!

Related Articles

Related Forum Posts

Share this article. Fund someone's dream.


Name:
Email: