Articles on Ashland, OH funding questions with invented figures worked in full, plus three cash flow notes: a security company, a quick-service restaurant and a printing company.
A 13-week cash view for an Ashland County, OH security company while a new site contract waits to be paid
Illustration only, invented figures. A security company staffs a new site contract from week 1, but in this example the contract's weekly payments start arriving in week 7. Payroll, the new guards included, falls in the odd weeks.
| Week | Cash in | Cash out | Change | Ending balance |
|---|---|---|---|---|
| Week 1 | $30,400 | $48,700 | down $18,300 | $8,200 |
| Week 2 | $30,400 | $11,900 | up $18,500 | $26,700 |
| Week 3 | $30,400 | $48,700 | down $18,300 | $8,400 |
| Week 4 | $30,400 | $11,900 | up $18,500 | $26,900 |
| Week 5 | $30,400 | $48,700 | down $18,300 | $8,600 |
| Week 6 | $30,400 | $11,900 | up $18,500 | $27,100 |
| Week 7 | $38,300 | $48,700 | down $10,400 | $16,700 |
| Week 8 | $38,300 | $11,900 | up $26,400 | $43,100 |
| Week 9 | $38,300 | $48,700 | down $10,400 | $32,700 |
| Week 10 | $38,300 | $11,900 | up $26,400 | $59,100 |
| Week 11 | $38,300 | $48,700 | down $10,400 | $48,700 |
| Week 12 | $38,300 | $11,900 | up $26,400 | $75,100 |
| Week 13 | $38,300 | $48,700 | down $10,400 | $64,700 |
In this invented example, laid out week by week, the thin spots are plain: from a $26,500 start, the balance drops to $8,200 in week 1 and comes back to about that level after the payrolls in weeks 3 and 5 ($8,400 and $8,600). Once the contract's payments arrive, it climbs to $64,700 by week 13. A company reading a forecast like this can size a request to the dip rather than to a round number; a line of credit drawn in payroll weeks and paid down between them is one way to cover it.
Ways an Ashland, OH quick-service restaurant can improve cash flow before a yearly service contract comes due
At a quick-service restaurant, a yearly bill such as a maintenance contract on the fryers and grills lands in a single week while sales come in every day. Ways to keep it from draining the account:
- Ask the vendor whether the contract can be billed monthly or quarterly instead of once a year
- Set aside a weekly amount, the yearly bill divided by 52, in a separate account
- Move card deposits to daily settlement, if the processor offers it
- Order packaging and food closer to need, so stock does not tie up cash
- Line up a funding option before the bill is due rather than after
Illustration only, invented figures: a $9,620 contract set aside weekly is $185 a week, and 52 weeks of $185 make the full $9,620.
Net-60 invoices at an Ashland, OH printing company: preparing a cash flow forecast step by step
- List every open invoice with its amount and the date it falls due
- Mark the customers who usually pay late, and by how many days
- Add paper and ink orders for jobs under way on their delivery dates
- Put payroll and material bills on their real dates
- Run the weeks forward from today's bank balance and find the week with the smallest balance
- Compare that week's balance with the cushion the printer wants to keep; the gap is the amount to talk about
A working capital sum or a line of credit can cover a gap like that, and a funding partner decides whether and on what terms. This site does not arrange real estate purchases or building work for an Ashland, OH printer.
Topics the Ashland, OH articles on this blog work through
The articles take these questions one at a time:
- How a business term loan gets paid down, traced on a service truck
- What a medical office loan can cover when a practice adds procedures
- Business loan requirements, one document at a time
- Folding an established shop's older balances into one term loan
- Leasing or financing plant equipment that dates within a few years
- One supplier statement priced as a short loan, a line draw and an advance
By Oceanreach Capital Group · Updated