Crunch numbers to determine the cash flow impact of the challenges and opportunities ahead.
Why it matters
Nobody expects the economic recovery from COVID-19 to be smooth. The strain may have already drained your cash reserves. Looking forward, cash modeling makes sure your plans stay within your funding resources.
How will you generate cash flow for your business to meet future scenarios?
Know your funding options
Not knowing your cash flow may be worse than having a negative one. Generating financial statements will give you a baseline for showing progress in a recovering economy, but your future cash flow projections will define your possibilities. Use online banking to gather data for daily projections.
Keep your finger on the cash pulse
Actions to take
Financial support may be available through relief programs from the SBA, including, Disaster Recovery Loans and others. Truist can help you explore these and other bank loan options. Some localities offer aid programs as well.
Lean on working capital
Take advantage of the payment terms provided by your suppliers to stretch outgoing cash. Use business credit cards for extended terms on purchases. With reduced demand, you may be able to lower inventory and free up funds.
Get the workbook
With thoughtful step-by-step planning exercises and action items, the Small Business Recovery Workbook is the perfect companion to this guide.
Use it to organize all your ideas and goals in one place—so you can focus on the big picture and your next steps.
As cash gets tighter, focus on collecting receivables. Contact customers to make sure you’re first in line for funds. Ask about potential payment delays, and agree to a payment plan. Shifting sales to credit card payment via merchant processing can get cash in faster. Also, ACH Pre-Authorized Debits can help bring cash in quickly and avoid checks and expensive wires.
Explore our interactive Cash Management Evaluator
Answer 10 quick questions to find opportunities to improve cash management.