The success of every business at one time or another will hinge on their cash flow. Cash flow is the amount of cash being received and spent in a given time period. If your an online business then you most likely get paid through some type of payment gateway. Almost every payment gateway pays on a cycle of some sort. Some are biweekly, others are bimonthly and there are some that only pay you when you reach a minimum amount of revenue.

Can you see an issue with that when it comes to the cash being received?

Let’s look an example. Your customer comes to you and pays you $100 for some service or product. You customer wants it now and not when your payment gateway decides to pay you. So you need the cash on hand to deliver what the customer has paid for.

The key to success here is to ensure you have a very good relationship with your banker. I know many businesses that go out of business simply because they can not pay their bills. If you have a good relationship with your bank they will work with you to provide solutions like over drafts or small business loans to cover any temporary cash flow issues.

Have you ever had issues with cash flow? If so how did you fix it?