Archive | August, 2019

6 Warning Signs of Financial Trouble for Your Small Business

28 Aug

Any entrepreneur knows there’s a chance that their business may not take succeed. Risk is inherent in any new business venture, of course. The Small Business Administration says that, while about 80% of small businesses make it through their first year, only 50% of small businesses make it past the five-year mark. Only one in three celebrate their 10th anniversary.

While most small business owners lack the crystal ball clarity of knowing what their future will hold, there are some clear warning signs that the company is faltering and in danger of failing.

Warning Signs of Small Business Trouble

  1. A failing income statement.
    Keeping an eye on the income statement is imperative no matter the age of the company. Red flags include a rising accounts receivables line or outright losses. If outstanding debt is high and you’re failing to collect on it, this could signal real trouble.
  2. Low cash on hand.
    Watching the balance sheet unbalance should make any CFO nervous. If cash on hand is shrinking or if you need to sell assets to make payroll, that’s a bad sign. Are sales down? Are your shelves filled with inventory that isn’t moving? If your business has a credit line, is it maxed out? Watch out for company bills not being paid quickly or increasing debt as a signal of trouble.
  3. External market factors signal increased competition.
    When a company feels competitive pressure, they must have the cash flow to shift tactics. If cash flow is a problem, a competitor could outbid or undercut on price, which could drive you right out of business.
  4. Legal troubles.
    Beware the corporate lawsuit. For companies struggling to stay afloat, a host of legal issues could arise such as vendors suing for nonpayment of bills, lenders pursuing property or equipment repossession, or even, failure to pay quarterly taxes.
  5. Failure to make payroll.
    If payroll checks bounce, there is a huge problem with the health of the company. One missed paycheck could have a long lasting impact on the employment relationship Once trust is lost, employee morale can decline in a self-perpetuating loop that customers will definitely notice.
  6. Bookkeeping holes.
    The health of a business can almost always be determined by the quality of the financial documentation. Clean books impact the company’s decisions about purchasing and growth. Without an accurate record, how can companies create a strategic plan for expansion? The simple answer is – they cannot.

While small companies can go through financial hills and valleys, these signs may signal that the business is in real trouble. If your company is struggling, talk to me about debt collection and other services that can improve the bottom line. There is no charge for this consultation, and it might just save your business.

Contact me today!

Call me at 770-224-8504 or 888-780-1333
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Medical Providers: Still Waiting for Your Personal Injury Cases to Settle?

7 Aug

Personal injury cases are taking longer than ever to settle, 18-22 months in some cases and possibly much longer. Many of the medical providers I speak with tell me that it takes WAY too long to get paid on their personal injury liens and LOPs (Letters of Protection). This causes serious cash flow challenges and excessive staff time needed to continue to monitor the status of cases and negotiate the reductions often requested by attorneys on the case.

If you treat personal injury patients on a lien or LOP, chances are you are facing the same kind of challenges to both your cash flow and staff time.

Get Paid Sooner, Not Later

I am now working with a firm that specializes in helping medical practices like yours get paid or treating personal injury patients. They purchase medical liens. This allows you to receive your payment sooner, and they work, and negotiate, with the attorneys to receive payment at the end of the case. Regardless of how the case ultimately resolves, you will have been paid for your services and relieved of your payment risk.

What’s In It For You?

Benefits of working with Velocity Medical Receivables Solutions, LLC.

  • No cost or financial investment required for the medical provider
  • Predictable cash flow on future receivables
  • Removal of payment risk
  • Money in advance of case settling, no waiting for cases to resolve
  • Confidence in accepting more personal injury cases knowing you won’t have to wait for your payment.

Let’s Talk!

I would love to show you how you can turn your waiting on personal injury cases into regular cash flow.

Let’s talk! Schedule a quick conversation about your practice at your convenience by CLICKING HERE.

See other ways that Cash Flow Strategies, Inc. can help you improve your practice cash flow by visiting our web site by CLICKING HERE

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