In recent years, many merchants have struggled to keep their doors open as they faced obstacles from the pandemic to inflation.
PYMNTS' Q3 2022 Main Street Health survey revealed that only 56% of small to medium size businesses (SMBs) expect revenue to increase in 2023, that's down from 64% last year.
The survey also found that inflation and cash flow are among small businesses' top concerns. This represents the fifth consecutive quarter of increasing concern over inflation, which marks a 31-point increase since last year. A substantial majority (71%) of small business owners believe that in terms of inflation, the worst is still to come.
Along With Inflation, Cash Flow Is A Major Concern For SMBs
Proper cash flow management is critical for the long-term financial health of your business.
A study from Intuit found that 61% of small businesses struggle with cash flow. Nearly one-third of those surveyed were unable to pay vendors, repay loans, themselves, or their employees because of cash flow issues.
How To Stabilize Cash Flow
As 2022 comes to an end, it may be best for business owners to act now to ensure better economic times in the year ahead.
The most critical aspect of managing cash flow is knowing how much your company takes in and how much you can keep on hand. If you have an accurate idea of your company's cash flow, you can follow these five simple steps from Business News Daily to increase your cash flow and manage your business.
Don't wait to send invoices. Facilitate faster payments by shifting from a monthly invoicing model to invoicing when you complete a certain amount of work. A report on B2B late payments found that receipt within 60 days only increases cash flow by 10%. SMBs ranked improving collaboration with customers, suppliers, and partners as providing the best return on investment.
Adjust inventory. Check your stock to identify items that aren't selling well and consider discounting them.
Borrow money before you need it. The best time to resolve a cash flow problem is before it happens. If your business runs smoothly, now is the time to borrow money. This will give you cash to fall back on should you experience a bump in the road.
Take advantage of technology. The right technology can make a big difference for your company. Automating routine tasks with new technology allows you to spend less time stressing over cash flow and more time running your business.
Consider your funding options. Taking on debt isn't always a bad thing. Sometimes, all a business needs is a quick cash injection. Consider borrowing money as a temporary fix until your business is strong enough to stand on its own.
Since 2005, Quikstone Capital Solutions has provided thousands of SMBs with a lifeline in the form of a merchant cash advance for all their business needs, including improving their cash flow.
There are many benefits to funding from Quikstone, including a simple application process with no collateral needed. If a merchant accepts credit cards, they could qualify for up to $250,000 and have their funds deposited in less than five days.
If you need to stabilize cash flow, buy new equipment, increase inventory, hire staff or expand or remodel, Quikstone has a plan for you. Contact us today to get started.
