Cash Shortfalls
It is not uncommon for at least once during the life of a business for it to experience cash shortfalls. When this happens your business can be in a tight spot and unable to pay its bills. This can sometimes happen because of faulty bookkeeping but if you are prepared for this situation, then you can get your business out of this hole.
You could have trouble finding a lender that will lend if your business is already seen as desperate for funds. Many businesses do not plan for this to happen and so when it does, they are unprepared to handle cash flow troubles. If you are lucky enough to predict when the market will turn, then you can arrange a line of credit ahead of time, just in case.
If a lender will not help, then you can turn to your suppliers as a last resort. Some suppliers will give a loan for overdue bills because they need business to stay in business also. The interest rate will be higher than a regular lender but it will keep you on good terms with your supplier and that is important too. You can also ask your customers to quicken their payments to you to help in your situation.
