Cash Flow

5 Types of Equity Financing for Small Business

Starting a new business presents many challenges, especially having insufficient capital. As a small business owner, you may not have enough money to start and grow your business. So you have to rely on others to provide you with capital. Individuals and organizations willing to finance your business will give you different terms, depending on […]

Considerations for Your Business Budget

Budgets are necessary when trying to optimize your business. Without a goal and understanding of your income and cash flows, a business budget is essentially an aimless savings account with no intended purpose. When budgeting, you must know and understand what money is available to you, how much you spend, how much you can acquire, […]

What Is an Opportunity Cost? How to Calculate

Opportunity costs are expenses you pay when you choose one alternative option over all others. These costs may be financial but are not limited to and are necessary to consider for all business owners. This article will give an in-depth analysis of what opportunity costs are, their applications in the real world, and how you […]

12 Small Business Loan Industry Statistics

Suppose you’re considering applying for a small business loan. You might wonder how good your odds are of getting approved for some form of financing. We understand your concerns, and we’re happy to say that the odds of receiving some financing are in your favor. In this article, we’ll provide information on some statistics and […]

How to Calculate Your Free Cash Flow

When you’re running a business, there are many things to keep records of. There are expenses, taxes, and payroll, to name a few. One essential thing to track is your free cash flow, or FCF. It may seem daunting, but this article will detail what free cash flow is and how to calculate it. What […]

How to Make a Profit and Loss Statement

Making a profit and loss statement (P&L) is one of the most important things you can do for your business. This document tells you how much money your company has made and lost over a specific time. It can also provide insights into your business’s financial health and help you make better decisions about where […]

Calculating Discounted Cash Flows in Payback Period

Business owners and project managers use tools like discounted cash flows in the payback period to make fiscally responsible investment decisions. You can determine whether a proposed project is viable with this formula since this formula compares the initial costs involved with the financial returns you can expect to receive. In this article, you will […]

Net Cash Flow and How It’s Used

If you’re a first-time small business owner, you’re probably getting hit with financial terms like “net cash flow” that would make the average person want to run for the hills. However, it is important to stay informed to help your business remain afloat. Understanding bankruptcy, profit and loss and everything in between – financial literacy […]

Email Templates You Can Use to Politely Ask for Payment Professionally

Working for yourself is excellent. It provides flexibility and the opportunity to do what you genuinely love. However, that’s not to say running your own business or working as a contractor is all roses. There are times when it’s inconvenient to have to rely on several different clients to get paid, whereas being an employee […]

How to Collect Unpaid Invoices & Deal With Them

You’ve been working hard for months, maybe even years, to build your business. You take care of your customers, and they love you for it. But a few of them are still not paying their invoices on time, and now you’re feeling the pressure to act professionally yet again. It’s an unfortunate reality that some […]

How to Audit Your Cash Flow and Accounts Receivables

Creating accurate reports on your company’s cash flow is an essential part of running a successful business. A cash flow statement can show how your accounts receivables, inventory, and accounts payable line up yearly. By analyzing these trends, you’ll be better prepared to help your business grow. Falling behind on auditing your cash flow and […]

How To Calculate Cash Flow Margin

A company’s cash flow margin is one measure of its profitability. The cash flow margin reveals whether an organization can convert sales activities into liquid assets. While this margin can also show how profitable a company is, there isn’t a firm, universal baseline. A margin that’s ideal for one company might indicate a loss of […]

Cash Flow Risk Management and How to Reduce Risk

In any business, cash flow, which is the amount of money that moves in and out to determine the value of the business, causes entrepreneurs sleepless nights. Because a business is exposed to several uncertain financial issues, cash flow risk can come in many forms. These include competitive, industry, or financial cash flow risk, resulting […]

Cash Flow Modeling Techniques

Just like the water cycle for the Earth and blood circulation for the human body, cash flow for a business is vital. In fact, many businesses fail to run for longer than three years due to poor cash flow. Not only is cash flow necessary for a business’ survival, but it is also needed in […]

How to Understand Cash Flow Loans

Whether you want to fulfill payroll obligations, open a new business branch, or invest in a promising opportunity, a cash flow loan is an excellent way to finance your capital needs. Confused about cash flow loans and how they work? Here’s an in-depth guide covering everything, from what a cash flow loan is to the […]

How to Improve Cash Flow for Your Trucking Company

Most small business owners are acutely aware of the challenges associated with expanding their business. Trucking companies are no exception. It isn’t easy to establish and maintain a trucking business. It takes hard work, business knowledge and quick thinking to succeed. While not all business owners will be successful, those who succeed take the time […]

Cash Budget vs. Statement of Cash Flows

As a business owner, managing cash is a tedious but necessary part of the job. Keeping a hold of your cash flow is critical for a thriving, successful business, but it’s not always the simplest task or the easiest to understand. Two terms often thrown around in the realm of business management are ‘cash budget’ […]

How to Calculate the Cash Conversion Cycle

When you’re running a small business, you must know several formulas to keep expenses low and maintain high-profit margins. Other formulas present business owners opportunities to know how fast their inventory is selling and tracking cash flow, called the cash conversion cycle (CCC). It’s also known as the net operating cycle. Read on to find […]

Cash Flow Analysis Techniques and Tips

Running a small business is no easy feat, but running a successful small business takes even more time and skill. Performing a cash flow analysis and looking at your expenses can be the difference between your business floating or sinking. Knowing the financial health of your company helps you identify what you’re doing right and […]

The Importance of Cash Management to Small Business Success and Tips to Do It Effectively

Keeping cash flowing is a business’s key to success. Sadly, companies that do not manage their cash smartly tend to fail quickly. Along with making a profit, keeping the cash flowing is vitally important, especially for small businesses that are getting started. Young businesses often suffer from cash flow problems, and they need that money […]

What Is the Cash Ratio and How Is It Used?

The cash ratio, also known as the cash asset ratio, is a liquidity measurement used by financial analysts. Its purpose is to evaluate a company’s capability to pay off any short-term debts. This capability is determined by calculating the ratio of the short-term assets against a company’s short-term liabilities. There are two other common ratios: […]

How to Create a Business Cash Flow Statement

What exactly is a cash flow statement? Before you can make one, it is essential to understand the definition of what a cash flow is. Cash flow is a company’s ability to generate revenue and the operational turnover of a business. The cash flow statement is part of the trifecta of financial statements that are […]

9 Ways for Businesses to Survive and Thrive During COVID-19

No matter the size of your business, it probably has been caught in the crosshairs of COVID-19 in one way or another. The pandemic has brought businesses to their knees, fighting to keep customers and finding new ways to stay innovative and grow. Businesses can survive during the COVID-19 pandemic, but it’s going to take […]

How to Get Your Invoice Paid Faster

For many companies Accounts Receivable collection can at best be described as a chore and at worst as an anxiety-inducing experience where one large delinquent customer can put their own business in jeopardy. As a bank that offers factoring, or Accounts Receivable financing, The Southern Bank has a wealth of experience optimizing accounts receivable collection […]

Cash Flow Problems and Customer Payment

What do agencies, staffing companies, manufacturers, consultants and other industries all have in common? In addition to supplying products and services to Fortune 500 companies, they’re all subject to the same strain caused by one of the latest trends in corporate finance – longer payment terms. More often than not, cash flow problems and extended […]