Business owners looking to drive their business forward need to be aware of their capital base and liquidity for working capital and investment purposes.
Critical to this is maintaining a strong cash flow.
The infographic below contains 4 top tips for managing business debt and maintaining a healthy cash flow.
Cash flow is important whether you choose to fund your business’ working capital needs with cash or a line of credit.
In the case of seeking credit from a bank, maintaining a healthy cash surplus will positively influence the bank’s view of your loan’s serviceability, which may result in:
- less onerous loan conditions and covenants
- more flexible financing options
- improved cost of borrowing.
We have a number of free resources containing more advice on this topic:
- Managing your banking relationship ebook
- Managing cash flow and working capital ebook
- Working Capital Checklist template.
The JPAbusiness team offers a range of business advisory services that can help with cash flow management, including assessing and offering advice on your current business systems and processes.
Contact the team for a confidential, obligation-free discussion.
