How has COVID-19 affected your customers?
COVID-19 may have significantly changed customer priorities, buying patterns and distribution channel preferences.
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?
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.
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.
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.