|
Charter Capital offers helpful advice to small
businesses to help them weather economic slow-downs and
manage cash flow.
Houston, TX (PRWEB)
March 14, 2008 -- Dealing with an uncertain economy is
never easy, especially for small businesses. Unlike
their larger counterparts, small businesses rarely have
the resources to monitor and take corrective action for
every trend and issue. And even those owners who have
weathered numerous business cycles may be faced with new
circumstances that confound their otherwise successful
instincts and knowledge.
While there is no crystal ball that accurately
predicts the future, small business owners can take a
number of steps that will help their enterprises endure
the worst of times, and position them for success when
conditions inevitably improve.
- In the face of the ongoing credit crunch, consider
an alternative to borrowing funds from a commercial
bank.
Consider a funding line from Charter Capital, a
preferred provider of accounts receivable factoring
services (http://www.chartercapitalusa.com/invoice_factoring.html).
Charter Capital has vast experience in economic cycles,
and can advise you on issues specific to your business
and industry. It may be helpful to arrange for a
factoring or funding line. You may not need it for
several months or at all. But if a lag in cash flow
occurs, you will have a ready source of bridge money in
place.
- Make sure you have good relations with your
vendors.
You may find it necessary to renegotiate terms, but
overdue bills and inconsistent payment practices will
not help your position. What's more, your vendors may be
experiencing financial difficulties as well. Any
flexibility will hinge on whether they perceive you as a
reliable partner, or a risk. A factoring or funding line
from Charter Capital will help establish you as a
reliable partner.
- Similarly, keep a close watch on your receivables.
Follow up with whoever owes your company money and
make sure they are meeting their terms. Be firm when
dealing problem accounts, but also be willing to
negotiate where appropriate. It may take only a matter
of months for a struggling customer to become a highly
stable source of income. If you can accommodate such
situations without adversely affecting your company's
financial position, everybody wins. A factoring or
funding line from Charter Capital will give you the
freedom to extend even more generous payment terms to
your valuable customers.
- Step up your marketing efforts.
Many businesses mistakenly see marketing as a luxury
when money is tight. The truth is that this is the time
you need marketing most. Along with reassuring your
current customers that you are still there to serve
them, marketing can help you reach new markets that will
sustain your business now, and facilitate its growth in
the future. A factoring or funding line from Charter
Capital will give you peace of mind to accelerate your
marketing effort knowing that you have the cash flow to
support your increase in sales.
- Make sure expenditures can be justified, and that
they contribute to the financial health of your
business.
You may find it necessary to redirect money to areas
that will enhance business performance. If you carry an
inventory of products, check the accuracy of your
records and procedures to prevent losses. Do not feel
pressured to hold down sales for lack of inventory. A
factoring or funding line from Charter Capital will give
you freedom to invest in even more inventory than you
might otherwise be able to afford.
- Review your operations and expenses on a regular
basis.
If you monitor your profitability on a monthly basis,
it's a good idea to do it weekly or biweekly during slow
economic times. Likewise, you should review your
business plan more often. Monthly or quarterly reviews
will make it easier for you to make adjustments and keep
your business on track. A factoring or funding line from
Charter Capital will give you a certain amount of
flexibility in meeting your cash obligations. Obtain
cash to negotiate prompt pay discounts with your
vendors. Meeting your payroll and payroll tax
obligations on a timely basis will most certainly save
you additional expense.
Headquartered in Houston, Texas, Charter Capital (http://www.chartercapitalusa.com)
provides accounts receivable financing (also known as
invoice factoring) and asset-based lending for
businesses nation-wide including: freight,
transportation, trucking, medical service providers,
consulting firms, service providers, staffing firms,
distributors and manufacturers.
###
|
