I’ve been watching the news and talking with colleagues and clients and wanted to share some strategies with you that may come in handy as you navigate through uncertain times.
Consider these cash preservation ideas…
- Research refinance options for any high interest loans and ask for some or all of the closing costs to be waived.
- The Small Business Administration has created a program to fast track low interest loans under its Economic Injury Disaster Loan, visit: www.sba.gov/disaster
- Reach out to your lenders about deferring payments, or reducing to interest only payments, on debt.
- Ask your landlord if you can pay rent at the end of the month (in arrears) for the next 90 days.
- Ask your landlord about reducing or deferring Common Area Maintenance (CAM) charges for the next 90 days.
- Call clients to see who can pay faster/earlier.
- Call vendors to see if you can get extended terms or defer some portion of invoices to a later date.
- Ask vendors to take payment on a company credit card. Ask the vendor to charge the amount just after the credit card statement drop date. This can defer a payment from 15-45 days if timed correctly.
- Reach out to your credit card company to ask for reduced or zero interest for the next 90-120 days.
- Bill customers as quickly as possible.
- Consider whether you have any customers who might pay now for future delivery of services.
- Defer your personal tax return filing and payment to July 15th. The IRS issued recent ruling that is allowing a delayed 2019 tax filing until this date. However, if you are owed a refund file your return now to get the funds.
If you think of other ideas, I’d love to hear them! My belief is that we will come out of this stronger and definitely together when times are tough. Stay well and here’s to more cash flow coming into your company!
Mike