Your cash is the lifeblood of your business. In its most basic terms, cash flow management is the art of delaying your outgoing payments as long as you possibly can, while encouraging anyone who owes you money to settle up as quickly as possible.
A good cash flow strategy can be broken down in two basic parts:
Part 1: Extending Payables
Part 2: Improving Receivables
If you are concerned about cash flow, ask yourself two questions:
Sometimes, it’s necessary to take out a loan to properly manage your cash flow and set yourself up for long-term success. You could consider a revolving credit loan or an equity loan. Talk to a Uwharrie banker about your business cash flow needs and see how we can help.
These articles are for general information purposes only and are not intended to provide legal, tax, accounting or financial advice. Uwharrie Bank cannot guarantee that it is accurate, up to date, or appropriate for your situation and takes no liability for your use of this information. You should consult with a qualified attorney or financial advisor to understand how the law applies to your particular circumstances or for financial information specific to your personal or business situation.