Business Cash Blues: Sources of Cash Scarce and Where Yours Might Be Hiding

The Small versus Large Business: Cash Flow Reveals A Glaring Divide
According to Cortera, a community-driven business information company covering businesses with less than 500 employees, there’s a growing gap between the payment behaviors of large and small businesses. In fact, small businesses are paying invoices 25 percent slower than a year ago and 20 percent slower than the overall business average. While that may be good news for large businesses, analysts believe the growing divide signals a clear warning that the average small business owner is in trouble.

Some Small Businesses Stop Accepting Cash Altogether
As scary as that sounds for the consumer, it’s actually happening with small business all across the country. For example, Twin Cities Business writer Hans Eisenbeis reveals that restaurants in the northeast are restricting sales to customers with plastic exclusively. While the practice encourages flexibility and privacy, the movement weakens the value of the dollar in theory and practice--something that the country can hardly afford.

Find Your Hidden Business Cash Sources
Susan Ward, About.com’s Guide to Small Business: Canada, suggests looking to outside help in raising your business’ cash flow. For example, cloud computing leverages existing technology resources to lower your tech expenses. Also, bartering services with other businesses encourages welcomed exchange without tying up business cash in the process. And finally, peer-to-peer lending takes traditional big banks out of an already complex economic network-- a trend that should continue in the near future.