4 tips you need
to know for better
Projecting the peaks and valleys
You can't predict everything that might happen in your business, but smart cash flow management can help insure you have the funds you need to meet your basic expenses.
Cash vs. Cash Flow
Cash – Money in the bank. It is not inventory, accounts receivable or property.
Cash Inflow – Money coming into the business from accounts receivable (sales), investment income (by partners for example), loan advances, tax refunds, rebates.
Cash Outflow – Money flowing out of the business through accounts payable (suppliers), monthly expenses (utilities, rent, insurance, etc.), payroll, taxes, loan payments, fees and investments.
Cash Flow – The flow of income and expenses through the business. Positive cash flow means the cash inflow exceeds the cash outflow (cash leftover after all expenses are paid). Negative cash flow indicates expenses are exceeding available cash to pay for them.
Prepare your cash flow projection on a monthly basis for a period of 6-12 months, 2, 3 or even 5-year periods. Most small business accounting software programs have the ability to create cash flow projections, or you can use a simple spreadsheet.
Cash Flow Management Tools
Your PCB Loan Officer
Ask your loan officer to review your cash flow projections. Call these direct lines to speak to Lynn Kinder (547-4813) or Gene Wollenberg (547-4817). It's a free service to all PCB business customers. Customer service reps can assist with a number of concerns as well. We're here to help — call 547-4850!
Line of Credit
A line of credit is a revolving loan that allows you to advance funds as you need them. Talk to your PCB loan officer about how a line of credit might help you.
Loans: Short- or Long-Term
Short-term loans (60 or 90 days) for example can help contractors purchase materials when a bid has been awarded on a contract job. Replacing aging equipment may qualify for a long-term loan. Call your PCB loan officer at 547-2436 to learn about the best use for short-term or long-term loans.
Check your balance in moments. Reconcile your checkbook regularly. Sign Up for Online Banking Today! Call 547-4850 and ask for Teresa, Janie or Sheila.