You Really Can’t Run a Successful Business Without Cash Flow Planning

Arguably the best, but often underutilized tool to run a successful business is cash flow planning (CFP). CFP tells you what cash you have coming in, and when, which enables you to address shortfalls in advance of an emergency. It’s especially important for companies struggling or losing money because routine CFP enforces the discipline you need to help bring the business under control.

Ideally, a rolling cash flow report should be run every thirteen weeks. With this report in hand, you will be better prepared to discuss your financing needs with your lender who will then be better able, prepared, and more willing to help you.

If you have no, or limited, finance expertise, here are a few tips for getting the CFP you need:

  • Ask your lender or CPA for a template where you can just plug in the numbers
  • Look online to access a CFP template
  • Check out B2BCFO (www.b2bcfo.com) where you can get access to a temporary or part-time CFO to set up a cash flow report template for you and provide support if you need it

 

The point here is that you need to get something set up that works for you. Once part of your business routine, CFP will save you (and your lender!) a lot of headaches and will put you back on a path to bank financing.

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.