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How to Keep Cash on Hand

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When it comes to running a business, one of the most important things you need is cash flow. But we all know how tough it can be to keep cash on hand when there are so many expenses needing to be paid.  For those tough times, National Business Capital can offer business finance. For now though, here are some tips to manage cash flow:

  • Pricing- Know the break even point when pricing your products/services. If you decide to offer a discount to attract new business, be sure you are still making a profit.
  • Bundle- Add real or perceived value to your product/service by bundling it with others. Warranties are good examples of this. you get a higher price point up front and your customer gets piece of mind should something go wrong.
  • Pre-Sell- Do you offer a product that customers are anxious for? Allow them to purchase the item, or place a deposit, before the item is ready for distribution. This puts some cash in hand and guarantees future sales as well.
  • Plan Ahead- Purchase business supplies during your busy season when you’re flush with cash. Many suppliers will offer pre-season discounts to help save even more money.

Set a goal for the amount of cash on hand you should have. A good starting point is 10 – 20 percent of monthly revenue. With this, you should have enough cash on hand to re-invest in the business. If you do find yourself short, give National Business Capital a call to discuss our business finance options.

Last Updated on July 16, 2014

National Business Capital is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Joe Camberato

Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.

https://www.linkedin.com/in/growbyjoe/

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Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.