Small business cash flow problems
Resources for late payments, working-capital pressure and large orders that create a cash gap.
What this covers
Cash-flow problems usually come from timing, not just profit. A business can look profitable while customers pay late, suppliers need paying early, stock ties up money, debt repayments rise or a large order creates a funding gap before the invoice is paid.
Why is my business short of cash if it is profitable?
Profit is recorded when value is created. Cash arrives only when customers pay and can leave earlier through wages, suppliers, rent, tax, debt and stock.
What should I check first in a cash-flow problem?
Check debtor days, supplier terms, cash reserve, debt repayments, stock levels and whether large jobs need funding before customers pay.
Does Merit Mana replace a cash-flow forecast?
No. It helps identify the likely pressure points. A detailed forecast should still be built from accounting records.