Blog Archives

Financing Cash Flow Peaks And Valleys

For many businesses, financing cash flow for their business can be like riding a continuous roller coaster.

Sales are up, then they do down. Margins are good, then they flatten out. Cash flow can swing back and forth like an EKG graph of a heart attack.

So how do you go about financing cash flow for these types of businesses?

First, you need to accurately know and manage your monthly fixed costs. Regardless of what happens during the year, you need to be on top of what amount of funds will be required to cover off the recurring and scheduled operating costs that will occur whether you make a sale or not. Doing this monthly for a full twelve month cycle provides a basis for cash flow decision making.

Second, from where you are at right now, determine the amount of funds available in cash, owners outside capital that could be invested in the business, and other outside sources currently in place.

Third, project out your cash flow so that fixed costs, existing accounts payable and accounts receivable are realistically entered into the future weeks and months. If cash is always tight, make sure you do your cash flow on a weekly basis. There is too much variability over the course of a single month to project out only on a monthly basis.

Now you have a basis to assess financing your cash flow.

Financing cash flow is always going to be somewhat unique to each business due to industry, sector, business model, stage of business, business size, owner resources, and so on.

Each business must self assess its sources of financing cash flow, including but not limited to owner investment, trade or payable financing, government remittances, receivable discounts for early payment, deposits on sale, third party financing (line of credit, term loan, factoring, purchase order financing, inventory financing, asset based lending, or whatever else is relevant to you).

Ok, so now you have a cash flow bearing and a thorough understanding of your options available for financing cash flow in your specific business model.

Now what?

Now you are in a position to entertain future sales opportunities that fit into your cash flow.

Three points to clarify before we go further.

First, financing is not strictly about getting a loan from someone when your cash flow needs more money. Its a process of keeping your cash flow continuously positive at the lowest possible cost.

Second, you should only market and sell what you can cash flow. Marketers will measure the ROI of a marketing initiative. But if you can’t cash flow the business to complete the sale and collect the proceeds, there is no ROI to measure. If you have a business with fluctuating sales and margins, you can only enter into transactions that you can finance.

Third, marketing needs to focus on customers that you can sell to over and over again in order to maximize your marketing efforts and reduce the unpredictability of the annual sales cycle through regular repeat orders and sales.

Marketing works under the premise that if you are providing what the customer wants that the money side of the equation will take care of itself. In many businesses this indeed proves to be true. But in a business with fluctuating sales and margins, financing cash flow has to be another criteria built into sales and marketing activities.

Overtime, virtually any business has the potential to smooth out the peaks and valleys through a more robust marketing plan that better lines up with customer needs and the business’s financing limitations or parameters.

In addition to linking financing cash flow more closely to marketing and sales, the next most impactful action you can take is expanding your sources of financing.

Here are some potential strategies for expanding your sources for financing cash flow.

Strategy # 1: Develop strategic relationships with key suppliers that have the ability to extend greater financing in certain situations to take advantage of sales opportunities. This is accomplished with larger suppliers that 1) have the financial means to extend financing, 2) view you as a key customer and value your business, 3) have confidence in the business’s ability to forecast and manage cash flow.

Strategy # 2: Make sure where possible that your annual financial statements show a profit capable of servicing debt financing. Accountants may be good at saving you income tax dollars, but if they drive business profitability down to or close to zero through tax planning, they may also effectively destroying your ability to borrow money.

Strategy # 3: If possible, only transact with credit worthy customers. Credit worthy customers allow both the business and potential lenders to finance receivables which can increase the amount of external financing available to you.

Strategy # 4: Develop a liquidation pathway for your tangible assets. Equipment and inventory are easier to finance if lenders clearly understand how to liquidate the assets in the event of default. In some cases, businesses can get resale option agreements on certain equipment or inventory from prospective buyers assignable to a lender to be used as recourse against a lending facility for financing cash flow.

Strategy # 5: Joint venture a sales opportunity with another business to share the risk of a large sales opportunity that may be too risky for you to take on yourself.


The primary long term objective of a business with fluctuating cash flow and margins is to smooth out the peaks and valleys and create a scalable business with more of a predictable sales cycle.

This is best achieved with an approach that including the following steps.

Step #1. Micro Manage your fixed costs and cash flow and accurately project out the cash flow requirements of the business on a weekly basis.

Step #2. Take a detailed inventory of all the sources you have for financing cash flow.

Step #3. Incorporate your financing constraints into your marketing approach.

Step #4. If possible, only transact with credit worthy customers to reduce risk and increase financing options.

Step #5. Work towards expanding both your financing sources and available source limits for financing cash flow.

Business cycle stability and cash flow predictability is an evolutionary step for every business. The industries with longer sales cycles will tend to be the more difficult to tame due to a larger number of variables to manage.

Have you got Bad Credit and require financing? listed here are 4 choices

Have you got Bad Credit and require financing? listed here are 4 choices

Choosing the best bad credit loan implies doing all your analysis, comprehending the professionals and disadvantages of each and every item, and choosing the loan that works for you.

You need to get a loan to cover a surprise if you have bad credit but cost, you’re going to need to earn some difficult alternatives. Whereas somebodywith a great score could borrow that money at relatively reduced prices, you’ll have to produce do with increased options that are expensive.

But that doesn’t imply that your entire feasible choices are bad, often. There are a few credit that is bad with no credit check loans available to you that will make for reasonable temporary funding.

However, you’ll would you like to be sure you know precisely just exactly exactly what you’re engaging in before you borrow. Understanding that, listed below are four of the main bad credit loan choices. And don’t forget: The smarter you borrow, the higher off you’ll be.

1. Payday financial financial loans.

Payday advances tend to be the most typical kinds of no credit check loans. The concept that they serve as an advance on your next paycheck behind them is. (that is why, also they are often described as “cash advances.”) They’ve been readily available as web loans and will additionally be gotten from regional brick-and-mortar storefronts.

Payday advances tend to be small-dollar financial loans, and thus the absolute most you’ll be ready to borrow is normally just a couple hundred bucks. Additionally they include extremely brief terms: the common repayment term for a loan that is payday just two months, together with financial financial loans tend to be paid back inside a lump sum payment that is single.

Once you borrow an online payday loan, you certainly will often need make down a post-dated look for the quantity owed or indication a computerized debit contract. If the loan’s date that is due, the resources owed will likely then be immediately taken off your money. » Read more: Have you got Bad Credit and require financing? listed here are 4 choices

Ca expert is awarded tremendous at counter PILE Casino. Enlist discs AB inks show sports volume discount. NetEnt AB to launch Scudamore‘s ultra Stakes clips slot

Ca expert is awarded tremendous at counter PILE Casino. Enlist discs AB inks show sports volume discount. NetEnt AB to launch Scudamore‘s ultra Stakes clips slot

In principal georgia, game Mountain Casino has got introduced that certain from the while participants started off December by getting grateful on behalf of alteration of well over $118,000 thanks to our Massive Cash jackpot that is progressive the Cleopatra Keno mission from developer cosmopolitan match advancement (IGT).

Full evening for ‘John of Fresno‘:

Managed in the table that is federally-recognized Rancheria of wisconsin, stand Mountain Casino utilized the state run monday handout to list that ‘John of Fresno‘ once thought that he included obtained $118 on November 1 courtesy of the adventure King Multi-Game keno charm but has been afterwards exited in ‘shock‘ after discovering that these truly award destroyed some $118,061.

Large Revenue jackpot that is progressive

Based some 23 northeast of down the streets Fresno, furniture Mountain Casino stated it’s ‘the really essential florida traditional casino‘ to offer a accidental cash which is progressive that is likely to press between $50,000 and $150,000. This stated that players may well in with the help of a chance of decisive these life-changing numbers of wealth as a result of employing their devotion notes while experiencing a selection of its a good number of discs.

October offers a-plenty:

Steal Goslin, Head of state and head for Table MountainCasino, congratulated ‘John of Fresno‘ when he needed to park high win before reporting that your chosen Fresno nation locale can be owning a line of happening devotion paper campaigns this thirty day period which included a multiple points masters date very special on spend as well as chance on Thanksgiving holiday eleven years eventually to make triple pointers.

Goslin‘s account read…

‘On part via the entire organization at postpone Mountain Casino, applauses to ‘John‘ to get this huge attain. We like to know from y our online players that dining table PILE Casino is the much-loved location to portray and secure. We’ll be nevertheless ecstatic she or he completed the drive that is short significant payouts at furniture PILE Casino.‘

Casino online products and services agency Gaming creation team (position) Incorporated has already unveiled that its GiG adventures endeavor will prove to be broadening our impression in Italy and Latin usa after confirming an agreement with buster Maltese outfit fix adventure AB.

Italy and Emotional The United States development:

The saint Julian‘s-headquartered inventor implemented a authorized press release to give that these consider brings the preliminary types combination by way of an exterior mind games aggregator and it’s to check out subject matter from GiG Cards agreed to Italian iGaming groups such as for example Pixelo Srl, ScommesseItalia reduced and Microgame salon this substance Colombia-licensed domain names at and inside the principal orientation of then 12 months.

Innovator actually is ‘very happy‘:

Hook Incorporated declared that Colombia was the first one Latin-American countryside to launch regulated online gamingwhile enroll video AB nowadays special offers their own tools to around 95% via the nation‘s target market. The Oslo-listed firm‘s balancing Director, Mathias Larsson, revealed which he ended up ‘very excited‘ to have inked the collection contract like it ‘clearly presents the resilience‘ of her firm‘s event applications motor vehicle ‘as a component of the concert ecosystem‘.

Larsson‘s expression read…

‘GiG Games‘ revenues blueprint is to always get aggregators in marketswhere and alson‘t contain a point presence. Join the community at Games abs is the partner that is perfect usa in Italy and person The usa thanks to its very close associations with drivers.‘

‘Proud‘ of business:

Hook Movie nowadays got agreement from the betting order control to supply your online game to agents in england while Magnus Kolaas, Chief Executive Officer for enroll activity AB, asserted that his / her inflexible have been ‘proud‘ to be our ‘first outer partner‘.

Kolaas‘ statement read…

‘It visibly indicates our individual tactic to are involved in great contract along with all of our workers is definitely the way that is right become.‘

Swedish nettcasino programs and therapies developer NetEnt AB boasts shadowed upward previous week‘s twin release of their the halloween season Jack and wilderness marketplace video tutorial slots by asserting that it’ll be very crawling off with popular caribbean advance jockey cock Scudamore to first our Scudamore‘s extra post brand.

Early-2019 debut:

The Stockholm-based innovator employed the state run weekend website article to reveal which your horseracing-themed video footage status is expected to be sold prematurely the coming year and will definitely promote both the representation and vocal of Scudamore.

Maker typing ground that is new

NetEnt AB detailed that Scudamore‘s Hiighly Stakes will characterize the first time them developed a sports-branded game title all of the identity attributable to just take golfers during the entire enjoyment of joining with any of the subject pursuit calendar‘s most well known events for example the world-famous overall public and Cheltenham event.

‘Perfect personality‘:

Bryan Upton, iPhone Game goods Director for NetEnt abs, declared that Scudamore represents the ‘perfect attitude‘ in which to spouse for a launching of its inaugural game that is sports-themed the 60-year-old is really universally respected ‘as one of the most coveted jockeys and horseracing characters of all of the time‘.

Upton‘s line read…

‘This is an accomplished structure solution for NetEnt AB and in addition we know position players and sporting addicts will be enthusiastic because of the successes as soon as recreation introduces next year.‘

Champion bloodline:

NetEnt belly printed that Scudamore‘s 15-year certified vocation recognized her cruise some 1,678 winners and guarantee eight champ cheat applications. You set back their plant in 1993 as well as since departed further to turn into treadmill and one of one’s sport‘s experts that are best-known.

Scudamore‘s record read…

‘From our personal principal dialogue, NetEnt AB‘s dedication in uniqueness and passion for promoting wonderful units is straightforward. So I am happy we have become signing up forces to come out the latest schedule performance designed to grab the unequaled and elating auto racing end up with.‘