• Product
        • Planning Maestro
          • Product Overview
          • Watch Demo
          • Schedule a Live Demo
          • Plans
          • Service & Support
        • Capabilities
          • Consolidation
          • Budgeting
          • Forecasting
          • Scenario Planning
          • Performance Dashboards
          • Financial Reporting
  • Solutions
        • Industries
          • Nonprofit
          • Healthcare & Life Sciences
          • Finance & Insurance
          • Manufacturing & Distribution
          • Retail & Hospitality
          • Software & Technology
          • Other Industries
        • Integrations
          • QuickBooks Online
          • Microsoft Dynamics 365
          • Sage Intacct
          • NetSuite
          • Abila
          • Other Integrations
  • Resources
        • All Resources
          • Our Blog
          • Webinars
          • Whitepapers & E-Books
          • Videos
          • Customer Case Studies
  • Company
        • About Us
        • Leadership Team
        • Partners
        • Press & News
        • Awards
        • Careers
  • Contact
  • Search
  • Menu Menu
Help Hub
Search
Watch Demo Request A Quote

Our Blog

Stable Cash Flow is Key to Business Growth

February 27, 2018/ budgeting, cash flow, cash flow analysis, cash flow budgeting, financial planning software/By John Murdock, Chief Executive Officer

Any business owner will tell you that cash flow is important for a healthy business. Positive cash flow allows you to pay your employees’ wages, get business supplies and maintain your business so you can continually attract new–and retain old–customers.

But cash flow is important beyond simply maintaining the status quo. A positive cash flow makes both strategic and opportunistic growth possible.

Cash Flow for Growth

With a positive cash flow, a company is set up to grow on their own terms, when and how they want, while growing relationships with both customers and investors.

Avoid Taking on Extra Debt

When an organization is looking to grow, but they don’t have the cash on hand to purchase supplies, hire people or add locations, they look to borrow the funds to make these plans possible. But when you take on debt you add other voices to your growth plan. If, however, you have a strong positive cash flow, you can avoid bringing in outside funds and keep complete control of your growth plans.

Make Yourself More Appealing to Lenders

Sometimes your growth plans are bigger than your current situation can accommodate. In those instances, having a strong, positive cash flow will make you more appealing to potential lenders.

Win New Customers

Organizations with available cash can expand their sales and marketing efforts as needed to support adding new customers. But knowing you have cash available can help grow your customer base in other ways as well. A highly desirable new customer may want to work with you but needs expanded or custom credit terms. When you have a strong cash flow and cash management procedures in place, extending special credit terms for an attractive new customer or customers becomes possible.

Flexibility

In today’s business world, customer demands change fast, and opportunities fly by. With a well-managed cash flow, you have the capital to seize these opportunities when they arise. So, if your customers suddenly want a new product in your stores, you can easily order extra stock. Or if a competitor is looking to sell their company, you can leverage your available capital to make an offer (before someone else does).

Improve Investor Relationships

Your investors had confidence in you and your business ideas. Enough confidence that they were willing to put up their own money to help you build a profitable business. A stable cash flow allows you say thank you to your investors in the form of dividends. Paying out dividends can keep your investors happy and interested in continuing to fund your growth.

Centage Corporation’s Planning Maestro is a cloud-native planning & analytics platform that delivers year-round financial intelligence. With Planning Maestro, Centage offers the sophisticated features needed by small and mid-market organizations to integrate budgeting, forecasting, and deep data analysis within one easy-to-use, scalable SaaS solution. For more information on how to modernize your office of finance with intelligent planning, view our product demonstration video, or call 800-366-5111.

https://www.centage.com/wp-content/uploads/2022/10/iStock-486021781-scaled-2.jpg 1707 2560 John Murdock, Chief Executive Officer /wp-content/uploads/2022/10/Group-780.svg John Murdock, Chief Executive Officer2018-02-27 19:36:272022-11-11 14:45:08Stable Cash Flow is Key to Business Growth
Back to List

Also by This Author

  • 5 Tips to Recession Proof Your Business Budget & Financial Forecast
  • Lessons Learned: 3 Trends From the Last Recession That Will Play Out This Time Around
  • The Challenges of Constant Change and the Need for Accurate Scenario Planning
  • Business Planning Best Practices to Navigate a Downturn
  • The Case for Data Integrations in FP&A Platforms

View Demo Video

Request a Quote

Centage Corporation
330 Cochituate Road, #807
Framingham, MA 01701
P: 800.366.5111

  • Product
  • Industries
  • Integrations
  • Resources
  • Company
  • Contact
  • Help Hub
  • Watch Demo
  • Request a Quote

© 2022 Centage

Privacy Policy

Terms of use

Sitemap

  • Product
    • Planning Maestro
      • Product Overview
      • Watch Demo
      • Schedule a Live Demo
      • Plans
      • Service & Support
      • Back
    • Capabilities
      • Consolidation
      • Budgeting
      • Forecasting
      • Scenario Planning
      • Performance Dashboards
      • Financial Reporting
      • Back
    • Back
  • Solutions
    • Industries
      • Nonprofit
      • Healthcare & Life Sciences
      • Finance & Insurance
      • Manufacturing & Distribution
      • Retail & Hospitality
      • Software & Technology
      • Other Industries
      • Back
    • Integrations
      • QuickBooks Online
      • Microsoft Dynamics 365
      • Sage Intacct
      • NetSuite
      • Abila
      • Other Integrations
      • Back
    • Back
  • Resources
    • All Resources
      • Our Blog
      • Webinars
      • Whitepapers & E-Books
      • Videos
      • Customer Case Studies
      • Back
    • Back
  • Company
    • About Us
    • Leadership Team
    • Partners
    • Press & News
    • Awards
    • Careers
    • Back
  • Contact

    Quick Links

  • Help Hub
  • Watch Demo
  • Request a Quote

Stay Informed