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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.

06 Oct 2015 – Invoice Discounting: Case Study 2 CapX recently received an enquiry from a prospective client with quite a unique situation. The client has a large staff compliment, which in turn generates a hefty salary run on the 25th of each month. Although they did not experience payment problems from their debtors, who…

12 Nov 2015 – Secured Loans: Case Study 2 A client is in the business of buying vacant residential plots in upmarket neighbourhoods and building houses on the plots before selling it for a profit. He is able to pay for the plot and a portion of the construction costs, but requires funding to complete…

04 Mar 2016 – Supply Chain Finance provides cash flow benefits to the supplier and the buyer In any supply chain, the cash flows between supplier and buyer are precariously balanced. The supplier needs payment from his buyer so that he can pay his own supplier, who also needs to pay his supplier, and so…