Ace Steel Metal Supplier Cash Flow Is King

Cash Flow Is King

“Recognize negative cash flow is happening early and fix the problem. Put together a cashflow spreadsheet so you can forecast. What you don’t know could put you out of business or ruin your credit. Even if you think you don’t need one, get a line of credit. Just think of it as a normal business expense, like your phone bill or electric bill.” 7 Secrets Your Steel Suppliers Won’t Tell You, Adam Osborn

“Let’s discuss both negative and positive cash flow.”

Negative Cash Flow: The most basic explanation is if you have more cash leaving your business than you have coming in, then your business is cashflow negative.”

Positive Cash Flow: This is when the cash coming into your business is greater than your expenses.”

“Track your cash flow and know your financial status. It’s a big deal, don’t just take orders and hope you have enough cash.”

Below are some ways to improve your cash flow:

Line of Credit (LOC) – “I would encourage you to get a line of credit and think of it as a monthly expense and cost of doing business.”

Buying more often will help with your weekly and monthly cash flow since these invoices won’t be as large. It helps to smooth out the spikes in your payables.”

Collecting from your customers. Don’t let your AR get away from you. You need them to pay so you can use the cash for your own payables.”

Review your customers credit on a regular basis.

“There must be a schedule developed to review your existing customers’ credit information.”

Following these simple tips will help you improve cashflow to strengthen your business.

It is best to go with a proven expert in their field. Call us if your company requires a secure supply of stainless, aluminum, cold-rolled or galvanized sheet metal.

When you are ready to save time, money and make your steel buying easier, give us a call. Our sales team is waiting to work with you.

CALL NOW 832-300-1030.