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The Importance of Positive Cash Flow for SMEs

Jul 20 2018

Cash Flow is a great signal to indicate the health of Small To Medium Enterprises (SMEs). Positive cash flow puts a company in a better position to grow and sustain the business.

However, if the business cash flow is constantly in negative, there should be an immediate concern to find out what is causing the problem. Not all situations are alike. However, many common issues can be solved by taking advantage of debtor financing with BCashflow Positive.

What is Cash Flow?

Cash flow takes into account the total amount of cash you have on hand. It looks at the total cash from one billing period to the next and compares money in with money out.

If you have money left over, you are cash flow positive. And if you’re left with a negative number, then you’re cash flow negative.

Why is Positive Cash Flow Important?

As the saying goes, “Cash is King,” and for a good reason. Having surplus cash is necessary for meeting operating expenses like wages, and unexpected expenses that might pop up like servicing equipment that requires maintenance.

There are many reasons why a company is cash flow negative. Poor cash management is a common factor with SMEs, which can lead to problems like restricted growth or worse, insolvency.

Even a profitable company has the chance of going out of business when the negative cash flow is a long-term issue. The lack of available cash is what can cripple a business over time.

BCashflow Positive Can Solve Your Negative Cash Flow Problem

A prime contributor to negative cash flow is slow payments.  This can cause a huge strain on a company’s cash flow, particularly if clients can take up to 90 days to pay.

Debtor financing with BCashflow Positive can provide your business with immediate cash flow and it is as easy as 1 2 3.

1.     Invoice your clients for sale of goods or services and send BCashflow Positive a copy

2.     Get up to 90% of the invoice value in as quick as 4 hours.

3.     Receive the remaining 10% when your customer pays us less any accrued fees.

Call BCashflow Positive today on 1300 937 292 and get cash flow positive!

What Our Clients Say

"We used BCashflow Positive when our bankers didn't want to know us, as we operate in an industry that was going to be affected by the introduction of the carbon tax.Traditional lenders were unable to deal with the uncertainty and risks.
BCashflow Positive understood the risk and assisted us with our cash flow, which was great"

Financial Controller, Solar Manufacturing Company, WA

"Getting instant funds from our invoices is crucial to our business success. It means we can pay wages on time and grow our business. The staff are also great to deal with."

Owner, Recruitment, NSW

"We engaged BCashflow Positive to get on top of our ATO obligations. Constant cash flow allows us to meet our operating expenses and grow our business."

Accountant, Earthmoving, QLD

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