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Cash Flow Calculator Many failed businesses are profitable when
they go under. This calculator from
bplans.com shows you how business-to-business sales, carrying
inventory, and rapid growth can deplete cash (working capital). Change
the variables and watch their impact on real business cash flow.
The Importance of Cash Flow As with most
businesses, cash flow is critical to ensure funds are available to meet
your operating needs. Without effective cash flow management, a business
faces several problem areas, such as cash shortages, inability to pay
bills, bankruptcy, or even business failure.
Cash outflows and inflows each happen on their own
cycles. Many times, cash inflows lag behind cash outflows, leaving your
business short of money. This is known as a “cash flow gap.” With
a large cash flow gap, your outflow of cash may not be covered by a cash
inflow for weeks, months, or even years.
Cash flow is one of the most vital elements in the
survival of a business. It shows where a company may be headed. Instead
of hoping everything will work out, you can enhance your cash flow with
a FactorLine from Charter Capital. When you can predict or even
control your cash flow, you are in a much better position for continued
business success. |
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