Cash Flow! There is nothing wrong with being ambitious!
There is nothing wrong with being ambitious if you have the money to build your business. But if your customers are not paying their accounts then your cash flow could be severely limited in what you can do. Consequently, your business will not have the awesomeness that it is entitled to.
Carrying customer debt has consequences. If it is not managed efficiently, it can impact on the business’s cash flow, which can hinder the growth of the business. Plus delay future plans assuming the business owner had anticipated some long-term plans with the profit.
Opportunities are reduced to expand your business
Cash flow problems can prevent the business from investing in stock and equipment, or expanding into new products.
Opportunities are reduced to secure discounts from suppliers
Cash flow problems can decrease the business’s ability to maintain a good reputation with creditors, and thereby decrease the chance of securing discounts.
Creditor’s accounts could be cancelled due to non-payment
When cash flow problems reduce available funds the business cannot pay creditors on time. Consequently the business could lose important accounts.
Bank finance could be refused
If the business is using a credit card to pay bills, finance could be refused until the card debt is reduced. If you already have a business loan to deal with creditors, you may not be able to ask for more to expand your business until you have reduced what you currently have. In addition, the interest on the credit card or business loan will be reducing your profit.
The business needs a cash flow strategy
A business needs a strategy to deal with customers who do not pay by due date. Biz Skills online lectures can provide you with strategies to keep the customer debt under control and give you the ability to achieve your ambition.
Visit Queensland Government Business website for advice about managing cash flow
Biz Skills courses can teach you how to deal with customers who don’t pay or avoid paying, plus identify the customer with cash flow problems and how to deal with them.
The list of courses will give access to individual courses to learn more information. On each course page, you will find a preview of the course and a free download with details of the course content.