Cash Flow – The Life Blood Of Every Business

Introduction

The purpose of this article is to familiarize business owners with a kind of financing that is unfamiliar to many people, Factoring. I will explain, in a simple yet comprehensive way, how to improve your companys cash flow. You may then decide if using the Factoring approach is a sound business decision for your particular situation and needs.

The Life Blood of Every Business

If we were in a room full of small business owners and asked them all, What is the one thing your business needs the most in order to survive and grow? we would probably get a variety of answers: a needed product or service, a solid base of loyal customers, a well-prepared business plan to chart your course, a good location, or effective marketing. All true answers. But in addition to these, there is one need central to every business that is the need for available CASH. This is where factoring or accounts receivable financing comes into play.

Cash to business is like fuel to a car. You need to have enough in the tank to start the engine and you need to maintain enough in the tank to keep it running. Now the car (your business) will take you where you want to go....