#cash-flow
Track and optimize cash flow for better financial health and stability
SBA's Working Capital Pilot offers 7(a) lines up to $5M — asset- or transaction-based — with borrowing-base certificates setting availability.
A 2/10 net 30 discount is a 36% annualized return — pay inside the window, hold the rest until due, and track DPO monthly.
Divide operating cash flow by annual debt payments: above 1.2 your business comfortably carries its debt, below 1.0 operations alone cannot cover it.
Daily bank-feed matching keeps your ledger within a day of reality, cutting the median 6.4-day close to hours instead of weeks.
Envelope budgeting assigns every business dollar a category before it is spent — tax, pay, operating, buffer — so variable income stops causing cash crises.
Compare margins, liquidity, efficiency, and leverage together each month — trends and peer benchmarks reveal problems raw statements hide.
Profit books invoiced revenue before cash arrives while loan principal, inventory, and draws drain cash invisibly — find the leak on your cash flow statement.
CCC equals DIO plus DSO minus DPO — top performers run a 39-day cash conversion cycle versus 63 at the bottom. Collect faster, hold less, pay smarter.
The AP aging report sorts unpaid bills into 30/60/90-day buckets; read it weekly to dodge late fees, capture early-pay discounts, and forecast cash needs.
An AR line of credit lends against your invoices; factoring buys them outright. Compare annualized costs, funding speed, and whose credit matters.
Cash concentration sweeps idle balances into one master account daily; notional pooling only nets interest on paper. For small business, sweep accounts win.
Divide operating cash flow by debt principal, capex, and owner draws: above 1.0 the business funds itself, below it the gap comes from borrowing or reserves.
