I was involved in a meeting with a prospect a few weeks ago who we will call Don. Don owns a manufacturing company which is presently experiencing a growth rate of thirty percent annually. The question we are looking at today is why don’t I have cash?
Why Don’t I Have Cash?
He is showing a profit, but his bank will not increase his line of credit and this is resulting in Don’s company having cash flow problems. He told me that he has to extend payments to his suppliers and they are not happy with him. Don also told me he is unable to call most of his customers for payment, because they are within their credit terms and he feels he would be harassing them. He asked me “Why don’t I have cash?”
More at WikiCFO.com
If you want to increase cash flow, then click here to access our 25 Ways to Improve Cash Flow whitepaper.
Access your Strategic Pricing Model Execution Plan in SCFO Lab. The step-by-step plan to set your prices to maximize profits.