Series - What Can Squeeze Cash Flow?

Rapid Growth – Your business is ticking along nicely when you are offered a lucrative contract to supply your product for which payment will not be received for 90 days after you’ve done the work, brought the supplies and paid the labour, and continue paying your ongoing expenses.  Are you able to sustain your business through this time and subsequently grow your business once the money is received? Do you approach a lender to get you through or do you assess the risks and decide to pursue a different route?

Rapid growth or overtrading is one of the most common reasons for business failure.  Careful cash flow forecasting can help eliminate this.