As any entrepreneur will tell you, managing cashflow is critical to the success of their business and many have faced the serious challenge of meeting the payroll at the end of the month because there is not enough money in the bank account.
However, these aren’t badly managed businesses. In fact, most are profitable and owned by responsible owner-managers who are involved in developing products and services and who will often not pay themselves if there is no money available in their bank accounts.
And how do businesses find themselves in this situation? As research has shown time and time again, the primary reason for cashflow problems is late payment by customers, either in terms of not being paid by the due date on the invoice or because of unfair payment terms usually from large businesses.
