How to Manage Cash-Flow Concerns

Maintaining liquidity is a critical issue for many of Amir Landsman’s commercial and small-business clientele. Positive cash flow and steady revenue streams can provide added stability for companies in the competitive marketplace. A number of strategies can provide improved financial results for companies in the current economic climate. Here are two of the most successful methods for ensuring adequate cash on hand for everyday expenses and emergencies in the small-business world.

Maintain Clear Lines of Credit

For companies with an established and clean credit history, obtaining open lines of credit with financial institutions can be a solid way to maintain positive cash-flow conditions within a small business. Companies can draw on these funds as needed and can repay the borrowed money over time to manage financial emergencies more effectively.


Small businesses with less-than-perfect credit can often take advantage of factoring arrangements that allow the sale of future payments on contracts for immediate cash on hand. Factoring companies collect the funds due and retain a percentage of the profits to cover their costs. Because the risk assessments for these arrangements are based on the creditworthiness of the company’s clientele rather than the company itself, small businesses that have experienced serious credit problems in the past may still be able to qualify and obtain funding through factoring companies.

Companies can also improve their liquidity and cash flow by increasing revenues and retaining a portion of profits as an emergency source of funding. By exploring all avenues for enhancing cash flow, small- to mid-sized businesses can create a more favorable financial environment for their ongoing operations.