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The Mid Year Cash Crunch

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The Mid Year Cash Crunch

Posted On: August 14, 2019 by First Community Bank and Trust in: Commercial Loans, Community Banking, Electronic Banking

“No plan survives first contact.” We’ve all heard the phrase. It can apply to business or bedtime negotiations with your toddler. You made a budget in the cold of January, assessed your goals for the year, and an unexpected opportunity has drained your capital reserves by July. Despite your best efforts, you’re tight on cash, but your employees still expect a paycheck. Where do you turn? Here are a few things to consider to get through your cash crunch. Speed up your receivables– Do you have a large customer that is dragging their feet? Speeding up collection time by even a few days can greatly improve your cash position on a month to month basis. Liquidate excess equipment- That forklift you purchased two years ago when things were booming is now collecting dust in the corner. Be honest with your equipment needs and liquidate unused or underutilized equipment. Revaluate credit cards– Credit cards can work in a pinch, but the interest and fees

The Mid Year Cash Crunch