PPP Money Running Low; Now What?

Businesses received PPP money in April and May of 2020. Hopefully, those that truly needed the money to cover cash flow shortages did some accompanying cash flow planning to project sales going forward. Having a plan would have enabled business owners to adjust expenses so that if the business was bleeding cash, the PPP money would get it through to better times.

While the third quarter of 2020 showed some improvement for some businesses, now, in several parts of the country, many businesses are worse off. However your business has fared, cash flow planning has been, and is still, essential. You need to know when you have cash coming in, going out, and be prepared for all circumstances. Cash flow planning will tell you where you are with your PPP money and whether or not cash is getting tight again.

If cash is getting tight, these are some of the questions you need to ask yourself:

  • Do I need to cut expenses?
  • What assets can I leverage if I need to – inventory? equipment?
  • Is my financing structured to handle my business needs?
  • Is my bank happy with the business’ performance or am I at risk or being asked to exit?

If you can’t come to the answers you need, it’s time to have a conversation with someone you trust for guidance – your banker, your CPA, a turnaround professional – someone who can look at (or develop) a cash flow projection and give you some sound advice. And the sooner, the better.

About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.

As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.

If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.