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4 Cash Flow Tips For Small Businesses

April 24, 2019 As a small business owner, you’re making all kinds of things happen every single day – from wrangling supplies to communicating with clients. But even the savviest of business managers encounter a cash flow issue once in a while. Here are a couple of tricks to help you master your cash flow. 

1. Close the payment gap so you have money when you need it

Amidst the daily hustle, many small business owners overlook a key aspect of improving cash flow – reconciling receivables to payables. In other words, make sure money is coming in before money needs to go out. For example, if you allow your customers to pay within 60 days but you are required to pay your suppliers within 30 days, a payment gap occurs where you may not have money coming in when you need it. Closing the gap is especially important in small businesses where funds may be limited in comparison to large corporations.

2. Use digital banking to spread out your expenses

Our brains are wired to spread out positive occurrences while enduring negative ones all at once (the ‘rip off the band-aid’ effect). While making lump sum payments feels easier, this habit can wreak havoc on your cash flows. Consider setting up automatic monthly payments at various times throughout the month using digital banking, so you can have more cash available when you need it.

3. Shop for the best business savings rate

You’re ambitious about your business, so why wouldn’t you be ambitious about your money? Shop around to make sure you’re getting a good savings rate. At Summit, we offer a high-interest , which is ideal for when you’ve built a savings of at least $2,500. So get a great savings rate, and then move on to the next thing on your to-do list.

4. Talk to a business development officer

Your business is your baby. When it’s time to expand, find someone you can trust to help you explore your financial options. are available to you as a resource – schedule an appointment and they can provide guidance on loan options and find a solution that works for you (and your baby!). These four steps can help you own your cash flow and better your business in the process. Need a little extra support? Summit Business Development Officers may be reached at 800-236-5560, Ext. 5995, option 1. You might also be interested in Side hustles are trendy, but can you make good money in the gig economy? Get tips to ensure that your side hustle business is actually worth the time & effort. As a small business owner, you’re making all kinds of things happen every single day – from wrangling supplies to communicating with clients. But even the savviest of business managers encounter a cash flow issue once in a while. Here are a couple of tricks to help you master your cash flow. It’s time to turn that awesome business idea into action! Don’t get intimidated about launching your company. Instead follow these steps to success. Financing a small business can be tricky, even if you’ve been at it for a while. Along with day-to-day cash flow management, there are short-term challenges and long-term goals that demand your attention. So as a busier-than-ever business boss, how can you stay on top of your everyday duties while also taking steps toward your future goals?   Here are three tips to help you stay on top of your financial game and get you where you want to go. 1. Shop for the right financial partner Taking that first step and starting your business is intimidating, but it doesn’t have to be. Check out advice from our President and CEO Kim Sponem to get you ready for that leap. Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA