With rising interest rates and inflation, cash flow management has never been more important. If your business is a body, cash is the oxygen: when cash moves in and out of your company at a healthy rate, your business is alive and kicking.
The importance of cash flow
Keeping up with debt
Maximizing cash flow management ensures your business stays ahead of all your debts. Debts can destroy both businesses and individuals and when you run a business, you typically accrue more debt than individuals.
Protect business relationships
Cash flow problems cause issues when it comes to paying your suppliers, harming business relationships and damaging your business’s overall reputation. Cash flow reports direct you on the correct finances available you need to pay suppliers. Without these reports, your business runs the risk of losing its reputation over time.
Managed cash flow increases opportunity
Cash flow is similar to debt management in the sense that it offers visibility into the areas of your business you can sustainably invest in for growth.
Premium Funding: A Cash Flow Solution!
Affected by the increasing insurance premiums? As a business owner, your insurance policies are obligatory, but the costs involved should not cause you unnecessary stress.
Premium funding is a way to avoid paying your insurance premiums in a lump sum.
The benefits of premium funding:
- Cash flow – frees up working capital for other higher income return generating opportunities
- Interest charges can be tax deductible
- Flexible repayment options (monthly, quarterly)
- No additional security required – the insurance policy acts as the security
- No impact on the ability to utilise an existing line of credit with their bank
Interested in how premium funding can benefit you? Contact the team at LA Insurance today!