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Navigating recovery Reexamine cash flow

How has COVID-19 affected your customers?

COVID-19 may have significantly changed customer priorities, buying patterns and distribution channel preferences.

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Reexamine cash flow during COVID-19

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.

Key question

How will you generate cash flow for your business to meet future scenarios?

Actions to take

Keep your finger on the cash pulse

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.

Know your funding options

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.

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Measures to consider

Work with your customers on receivables

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.

Partner with a trusted advisor

Partner with a banker, accountant or lawyer for options. Advisors know where to find resources and connect you with them.

Look at your business and personal finances

Can you forgo or delay your salary and/or distributions until your business has stronger cash flow? Learn how to manage personal and business interdependencies.

How Truist can help

Online cash management

Use online cash management services for the up-to-date information on your accounts.

Business credit cards

Use a business credit card to stretch your cash with extended terms on purchases.

Cash Management Evaluator

Find the best improvement opportunities with the Cash Management Evaluator.

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Up next in the guide

Get operations going

Put your operating plans in motion to stand up your business.