What should you do if you have a cash flow deficit?


In the event of a cash flow deficit, these are some of your options:

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  • Apply for a loan from a banking institution or individual.
  • Apply for a line of credit from a bank.
  • Speed up the collection process.
  • Finance the purchase of equipment through leasing or loans.
  • Liquidate assets.
  • Delay payments to vendors.
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Sometimes you may have a surplus of cash. That money can affect future opportunities, so you don’t want it to sit around. Accountants recommend that you make the surplus work for you. You can do this by making short-term investments and using the money to pay off debts faster. That way, the money will benefit you through generated interest or shorter loan terms.

Always consult with a professional accountant before making major financial decisions that could impact the future of your business.

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