A successful business is one thatâ€™s able to juggle their cash flow, and maintain a balance between cash coming in and cash going out. Creating a cash reserve is one of the most effective ways to handle short-term issues like falling sales, but indeed survive.
Banks are in a prime position to help small business customers build a cash buffer. Not only are you providing valuable advice that your customers will appreciate, but youâ€™re contributing to their success, which can only benefit the bank.
So what youâ€™re looking to do is provide your small business customers with the necessary tools and advice theyâ€™ll need to set up a cash reserve.
One of the most fundamental ways you can help your customers create a cash reserve is to set up an automatic payment for them. Take a percentage of their sales each month and use it to help build a buffer. But itâ€™s also important for your customers to understand the importance of a cash reserve, and some of the options they have to create one, such as selling un-used assets, reducing costs, and reviewing their inventory.
If you can help your customers to successfully juggle their cash and build buffers for those inevitable lean times, youâ€™ve created a win-win situation. The below article goes into more detail about why cash is king.
Read the full article at: money.aol.co.uk