How can i better manage cash flow to ensure all my bills are paid on time?
One word: planning. “There is no substitute for sitting down with a calendar and some past fi nancial data and building a cash-fl ow projection,” says Kvemshagen. “Then you can see when your expenses and obligations are going to happen and when the receipts are going to come in.” Funny thing about cash fl ow, though: predicting the outfl ow is often much easier than predicting the in, especially in the nascent days of a business. That’s why most fi nancial institutions counsel business people to apply for a modest line of credit from the get-go. 7. Do I need a line of credit? If you need equipment, real estate or long-term working capital, you need a term loan. “A line of credit is the appropriate vehicle when there is a cash-fl ow issue,” says Cutforth. “Payables are coming in faster than receivables, and you need ongoing access to cash to make payments.” When all the stars align, you may not need to draw on it at all. When customers are long in paying, you may require it extensively
