CASH LEAK OVERVIEW MAP
updated 7 months ago
Where is cash leaking from your company?
In reality, cash leakages occur when amounts of money are borrowed from banks but not re-deposited. Leakages also occur in the form of funds deposited in banks but not lent out. In this system, cash leakage lowers the ability of credit creation.
When it comes to running a business, stressing over cash flow tends to be part of the job. Without money on hand, it’s not possible to make payroll, cover your bills or pay your taxes. But the good news is you don’t have to move mountains to improve your business cash flow. By fixing a few common leaks, you can buy yourself some valuable financial breathing room.
Hidden Leak areas can be the following:
1. Slow Collection on Invoices
2. Covering Accounts Payable to Quickly
3. Not Using a Cash Back Credit Card
4. Too Many Unnecessary Expenses
5. Overpaying for Debt
6. Not Studying Cash-Flow Patterns
7. Failing to Have a Backup Plan