People go into business for all sorts of reasons.
Some want to solve societal problems.
Some want to make our lives cleaner or safer.
Some want to build things and some want to tear things to down.
No matter what their stated purpose is, the underlying mission of all businesses is the same: generate revenue. They do this to create jobs, facilitate growth, and reward stakeholders for investment.
Without ample cash flow, no business is able to complete its mission. Unfortunately, cash flow problems are what cause approximately half of all small to medium-sized companies in America to permanently close their doors before their fifth anniversary.
Here at the Commercial Finance Group, we’re dedicated to shrinking this number with our customized lending solutions that are specifically designed to alleviate cash flow problems with alternative short-term financing.
Signs You’re Experiencing Cash Flow Problems
- Negative cash flow
- Missing discounts on accounts payable
- Failure to pay all your bills every month
- Chasing one giant client who will “solve” all your problems
- Excessive short-term debt
- Overtrading
- Increasing accounts receivable turnover rates
The 10 Main Causes Of Cash Flow Problems
Warning signs of cash flow problems are simply an indication that something wrong is going on deep within your company. The most common reasons companies experience cash flow problems include:
- Declining Sales
- Declining Gross Profit Margins
- Lack Of Profitability
- Natural Negative Cash Flow Business Model
- Excessive Debt
- Excessive Capital Expenditure
- Excessive Personal Drawing/Benefits
- Poor Stock Management
- Poor Credit Management
- Poor Debtor Management
The Commercial Finance Group Can Make Your Cash Flow Problems Disappear!
If you’re struggling with cash flow problems, or fear that you may be seeing the signs that cash flow problems will crop up in the future, don’t hesitate to contact The Commercial Finance Group office in Burbank.
For decades we’ve been helping small to mid-sized businesses overcome their cash flow problems through our customized lending solutions, including factoring finance, asset-based lending, and receivables financing. Call or email our office to learn more about how we can help your business survive and thrive!
