Nobody is immune from an incident flow. If one day you’re faced with this problem, do not do the ostrich.Try to understand its origin and take the bull by the horns to resolve your concern quickly.

Suppliers shorten your payment terms? You need additional stock? These issues directly impact your cash flow.Cyclical reasons (bad weather, construction of a week in your street etc ,Can cause temporary financial difficulties.It is therefore important to analyze the causes of its cash flow problem to address it effectively.This preliminary finding will be useful when appropriate. However, if this is a recurring problem, you should reevaluate your need for working capital.Specifically, the working capital is calculated at the time of the creation of a trade.

cash flow

It represents the amount of capital required to finance the operation of your shop. It takes into account the “average basket of a customer,all of your inventory and your supplier credits. An operation absolutely necessary. You can also create your accountant a provisional plan for the cash to better anticipate difficult times.

Organizational levers

As a trader, inventory management is the first lever on which you can play if cash flow problem.You can quickly destock your products, but you have to question the relevance of your stock, probably too high compared to your monthly needs.You can also speculate on the time of payment.when a company can no longer meet its deadlines, it drags its supplier invoices. Instead, it should instead contact them spontaneously to explain his problem.They will then be in a better state of mind and can spread your debts.Informed ahead, creditors are more likely to spread or delay your payments,so you can avoid late penalties at prohibitive rates (usually greater than 4%).

In addition to your outstanding suppliers, or dates of your loan, you can also request an additional payment period from collection agencies. They can arrange your debt tax or social and stagger.To take advantage of this flexibility you will have to prove that these temporary difficulties and that you make an effort to resolve them.Somehow show that you are a good manager and you have the head on his shoulders.

Do not hesitate to call your banker

Faced with a cash flow problem, as a trader, you can play on your overdraft or your credit limit. This allows you to have a current account debtor for a limited period and fixed upstream in a negotiation with your banker.The only difference in the case of overdraft, your account can not remain debtor more than 15 days per month, while an open can run over several months. Naturally, cost is important because the rates associated with an account receivable are indexed to a base rate (6.6% in May), plus the margin of the bank.Though costly, these solutions cover easily spot cash worries.Bankers offer you after a thorough analysis of your financing needs, and will be adapted in terms of time.Finally, you can also negotiate a loan to fund a equipment or furnishings that you thought, wrongly, to pay cash.