Show your small business customers how to set up a cash reserve

Show your small business customers how to set up a cash reserve

A successful business is one that’s able to juggle their cash flow, and maintain a balance between cash coming in and cash going out. Creating a cash reserve is one of the most effective ways to handle short-term issues like falling sales, but indeed survive.

Banks are in a prime position to help small business customers build a cash buffer. Not only are you providing valuable advice that your customers will appreciate, but you’re contributing to their success, which can only benefit the bank.

So what you’re looking to do is provide your small business customers with the necessary tools and advice they’ll need to set up a cash reserve.

One of the most fundamental ways you can help your customers create a cash reserve is to set up an automatic payment for them. Take a percentage of their sales each month and use it to help build a buffer. But it’s also important for your customers to understand the importance of a cash reserve, and some of the options they have to create one, such as selling un-used assets, reducing costs, and reviewing their inventory.

If you can help your customers to successfully juggle their cash and build buffers for those inevitable lean times, you’ve created a win-win situation. The below article goes into more detail about why cash is king.

Read the full article at: money.aol.co.uk

Share

Glen Senior
Glen Senior

CEO Glen Senior has been helping small businesses start and grow since 1989. Along the way, he has published 6 books on small business development and business planning, created training courses, built e-learning platforms, and developed Microsoft USA’s Small Business Plus program which was delivered into 9 countries.Since 2005 Glen has focused on the banking sector and has built up an extensive knowledge of how banks can engage with the small business segment. He has presented at a number of small business banking conferences and is sought out as an opinion leader in this space.