What is cash flow and how do you manage it?
Misunderstanding cash flow and how to manage it can easily contribute to the failure of your business.
If your business lacks the cash to pay wages, rent and bills, in the best of times it will struggle to stay afloat.
But combine a lack of cash with uncertainty around the economy and survival can be even more difficult.
The COVID-19 outbreak has taken businesses into one of the biggest periods of economic uncertainty in recent history.
While such a unique event has made financial planning increasingly challenging, being able to forecast as best you can is paramount.
In times of change, communicating and renegotiating with suppliers, customers, lenders or investors is vital.
To do that most effectively, it helps to have the clearest view possible of your cash position.
Read this article to learn more about cash flow, why it’s so important, and how to manage it to help give your business the best possible chance of success.
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Reference to any organisation, business and event on this page does not constitute an endorsement or recommendation from the British Business Bank or the UK Government. Whilst we make reasonable efforts to keep the information on this page up to date, we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. The information is intended for general information purposes only and does not take into account your personal situation, nor does it constitute legal, financial, tax or other professional advice. You should always consider whether the information is applicable to your particular circumstances and, where appropriate, seek professional or specialist advice or support.
Making business finance work for you
Starting a business doesn’t come with a set of instructions.
We know that understanding the many different types of financial product in the marketplace can be difficult.
Our Making business finance work for you guide is designed to help you make an informed choice about accessing the right type of finance for you and your business.