Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map Online directory to business resources Biz Web Guide

Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

color business bar

Small Business Cash Flow Problems: How to Overcome Them?


For a new company or a business that aims to remain small, cash flow issues can often be a major stumbling block in the way of either expanding the company or servicing clients. A cash flow problem would basically mean a situation where the money isn’t available for use when your business needs it. This is obviously extremely detrimental to the running of the company, and is an issue that needs to be dealt with swiftly. Here are a few ways that you can overcome cash flow problems if and when you encounter them.

<iframe width="560" height="315" src="" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen></iframe>

There are a number of reasons why you may be faced with cash flow problems in your business. Even if you have executed your business plan to the letter, some extenuating circumstances can crop up and put you back at the drawing board. For instance, you may not have considered that your product would be in such demand, or you may have allowed customers too much credit and been too lenient with late payments. This happens a lot, and in the UK in 2016, 30 percent of small businesses reported customers who frequently pay their invoices late. There are many reasons why businesses come across these problems, and it’s perfectly normal. You just need to know how to act if it happens to your business.

If your accounts are all in order, the best small business funding options are usually to seek a loan from a specialist company. Fundbox, for instance, aims to give small businesses access to credit so that they can get cash straight away and cancel out any unwanted side effects that would occur if the cash flow problem wasn’t dealt with swiftly. All they need to do is assess the business information by reviewing your account and bank data. If all your affairs are properly organised, your business should be able to apply for funding.

Some business owners may be worried about getting themselves into more debt, and applying for funding loans may not be the best course of action for them. For those people, there are some non-financing cash flow solutions that they could look into.

One option that people will turn to first is to renegotiate supplier contracts and try to get a better deal, thus reducing the monthly outgoings of the company. According to business adviser Paolo Garcia, if the business’s growth profit margin is too low, this is the time to consider renegotiating the costs of goods sold with vendors.

Another way to sort out cash flow without having to apply for outside funding is to try to negotiate better terms with your trading partners. For instance, you could ask a partner to extend the timeframe for paying due on receipt, which would enable you to keep cash for a longer period. Other things to consider are improving invoice processing and setting up auto billing to make sure clients pay on time.

Cash flow problems can happen in any business, and if they aren’t addressed quickly, it can lead to the company going under. Make sure you know how to act if it happens to you.


Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2024, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.