How well you manage your business finances, especially during the first signs of a recession, plays a crucial role in your survival and market position in the post-recession economy.
Cash flow’s influence on capital and credit is particularly important in the manufacturing sector, which requires longer term financing of inventories and receivables than other areas of the economy. Even the most profitable small and medium-sized manufacturing business (SMB) can go out of business due to poor cash flow. In a hurry to grow, they become overextended and have no cushion. In national surveys of manufacturing companies, results point to cash flow as a major factor in obtaining access to capital.