Your cash flow is the lifeblood that feeds your business. Slow it down a little, you get high blood pressure. To avoid a cash flow cardiac, you need a credit plan that helps you track your receivables and determine when to extend credit, when and how to hold the line, and what to do when a customer unreasonably delays payment.
Small businesses are especially vulnerable to a sudden loss of cash flow.
What's more, these same large companies often are your biggest customers. Of course not. If you haven't, that's the first step of saving your company's life. Crunch your credit terms To begin building an effective credit plan, consider your industry. Others have much longer cycles, like publishing, where they can even send books back and you may not know for six months if you have a sale.