As a strategy and finance turnaround consultant, I have worked with many companies in crisis – usually one triggered by cash flow problems. The company’s bank account is heading toward the red and the business owner wonders how to meet future expenses.
Cash flow crisis require fast action and the first step is to look closely at the financial statements. The income statement and balance
Employees won't wait for payroll and landlords don't want to hear about your cash flow when rent is due. Sure, cash is a problem. But if you have Accounts Receivable, you already have the keys to unlocking more cash. Here's how you can get the cash when you need it the most:
The Root Cause
The biggest cash problems are caused when we send expensive goods or services to our customers, and then
I'm embarrassed to tell you that I actually screamed at a salesman over the phone today. It takes a lot to get me worked up, but in this case I broke. I simply wanted to PAY this guy, and he could not take payment over the phone.
ME: "What? No invoicing? No credit card? No Paypal, SquarePay, or Intuit Payment Network?"
SALES GUY: "No. Cash or check only, payable on delivery."
I recently discovered a number of businesses in the USA that are helping the Russian Mob rip people off. If you sell a product, your company could be one of them.
I'm not kidding.
HP and Office Max are on the list. So is PayPal. And hundreds of other companies that sell products online are also, unknowingly, helping criminals get rich.
Maybe you already know that someone stole my
You earn your money. But if you get paid by credit card, you're giving away 3% to VISA and MasterCard.
Said another way - you're paying credit card merchant fees of about 20 cents for each dollar of profit... 20% of profits just for the pleasure of getting paid.
Crazy, right? You have better uses for that much money.
Fortunately, there is a cheaper way to get paid. ACH – or the
You know times are tough when you start spending your time on lawsuits to collect your invoices. Over the last two years, I’ve had to beg, borrow and yes, sue to collect money owed to me by foreign customers. It’s humiliating and a complete waste of time. But it’s also a fact of life: international accounts receivable demand a different collections strategy.
The ATM on the sidewalk is dead. Long live the ATM in my pocket.
In 1973 the first ATMs changed the way customers paid. And for 40 years they remained a vital fixture of retailers, gas stations, and banks...until now.
Now cash and ATMs are quickly losing their appeal as new technology gives almost every customer a direct digital pipeline into their bank and credit accounts. Literally,
There’s no getting around it. Businesses run on cash. The current economic situation makes it painfully clear: when the cash flow stops, the business stops.
The amazing thing is that every company has the power to both predict and avert sales-related cash flow problems. A few numbers from your balance sheet and income statement are all you need to be forewarned of an impending
You may have figured out by now that Cash Flow is on my mind. We have customers who are not paying. Big companies, with big bills. So I'm sitting around figuring out how to squeeze money from these people.
To make it worse, the delinquent accounts are on the other side of the world. They probably figure that if they ignore me long enough, I'll go away eventually. That's not going to
Do you know how to use a UCC filing to protect your accounts receivable?
Imagine the panic I heard on the phone last month from my friend whose main customer was facing bankruptcy.
My friend's customer had recently purchased a TRAIN CAR FULL of product, had not finished paying for the stuff and was now heading quickly toward the courthouse for a complete dissolution (called a Chapter 13