Archive for June 2019

A positive cash flow keeps the heart of any business pumping, but a negative cash flow will eventually cause the business to fail. A growing business may appear to be successful, but it absorbs cash like a sponge and may actually be a house of cards with no future. Once the business owner identifies a negative cash flow trend, practical steps should immediately be taken to improve the cash available in the business. This article will assist you in turning your business’s cash flow positive again.

A positive cash flow is the life blood of any transport company. Without enough cash to keep on growing, more than 80% of all new transport and logistics companies fail within the first few years. The transport industry is dominated by several very large companies serving many equally large clients such as retailers, manufacturers and mines. Payment terms are dictated by the size of the client: the larger the client, the more negotiating muscle it has when talking payment terms to its suppliers. In a depressed economy where many businesses are fighting for survival, large clients can easily stretch payment terms to 60 and even 90 days from statement.