Photo Credit: Nic McPhee/ Flickr

Photo Credit: Nic McPhee/ Flickr

It’s easy to write off the value of cash in a world where credit cards dominate. After all, with financial transactions being done via digital mediums, surely it would make sense that cash no longer holds the same significance that it once held.

For the established business owner, those thoughts could not be further from the truth. Being able to monitor your cash flow projections over an extended period of time is crucial for a business. According to Leonard Eppel, managing director and CEO of Financial Resource Associates, “Closely watching cash provides an early awareness of any significant change either internal or external. The cash forecast also presents a consolidated snapshot of every significant source and use of funds while providing key early indicators of the strategic alignment of all expenditures.”

Gary W. Patterson, owner of the firm FiscalDoctor Inc. takes it a step further, noting that many business owners risk suffering the consequences of their business doing too well. “You may get a $1 million contract, for example, but you’re going to spend a lot of money before you get it back. If you’re not prepared, it could kill you,” said Patterson.

There is one other significant advantage that can be gathered from having a solid, accessible cash flow. Patterson notes that, “You can take bigger risks if you’re more comfortable about where your company is on the pluses and minuses, particularly how accurate your balance sheet is.”

If you find yourself in the position that Patterson described, or you’re looking to turn your accounts’ receivable into a steady cash flow, consider Capital Solutions, Inc. as a one-stop shop for your problems.

Capital Solutions offers both invoice factoring and purchase-order financing. With invoice factoring, eighty to ninety percent (80-90%) of an invoice or purchase order may be provided by Capital Solutions to business owners as a cash advance prior to payment by the customer. This 80–90% of the invoice is granted to the business owner so that he or she can use those funds at his or her discretion.The remaining ten to twenty percent (10-20%) is held in reserve with the factor. When the payment is received, the factor releases the reserve less the charges incurred back to the company.  Purchase-order financing is a great choice for businesses that have orders ready to fulfil, but lack the cash flow to pay the supplier up front.

For more information on any of the financing options offered by Capital Solutions, Inc., call 1-800-901-3299 or click on the Contact Us tab and fill out the necessary information.