Build Your Cash Reserves

Build Cash Reserves

 

Building a cash reserve is critical for a small business. After all "Cash is King" - as they say.

No matter how well you plan for your business, you may run into some unexpected surprises. Your customers may delay their payments or you may run into some unplanned expenses.

You would not not like to have a situation where your wonderful plans run into difficulty due to a small unexpected bump.

It is wise to plan for such unforeseen circumstances by focusing on Cash Flows and saving for and building a cash reserve in advance.

In order to maintain a healthy Cash position,you must pay attention to the following:

  • Run efficient Billing and Collection Systems
  • Try and obtain best possible credit terms from your suppliers
  • Ensure that you have obtained sufficient Working Capital limits from your bankers
  • Keeping on top of your finances also means that you keep your payables in control
  • Invest your surplus cash wisely to earn those extra bucks.