Cash flow is the top priority for small businesses, but it’s also the top reason that small businesses fail.
Why it matters: Having solid cash flow and access to capital directly impacts small businesses in practically every way, from managing assets and operations to financing and managing supply chains.
Small business owners can take initial steps to set their business up for success by focusing on:
- Liquidity & Solvency
- Cash Management & Payments
“Liquidity looks at the short-term capability of your small business to pay its liabilities, and solvency looks at the long term,” says Jeremy Shackleford, SVP and Director of Small Business Sales for WSFS Bank. “Both are key to your business’ success at any stage, and there are options available to address both in tandem.”
Adds Shackleford, “The day-to-day management of your cash flow and payments using efficient methods for accounts payable and accounts receivable is also key. Speak with your banker about available tools and account setups that can make managing your cash flow easier.”
Go Deeper: Learn more about managing your small business’ capital and cash flow.
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