Earlier today Imagination Publishing posted a podcast interview with our founder and CEO Jerry Mills on preparing for a cash crunch. So far the podcast is getting raves from the folks over at Wells Fargo.
Three absolutely critical areas I’d like to amplify/expand:
1. You must have timely, accurate cash flow reporting in place to anticipate cash crunches to enable any proactive remedy.
2. You must regularly review your customer credit limits and terms, considering both payment history and credit bureau reporting and consider some tough decisions.
3. You must cultivate your bank relations, keep them fully apprised before its reaches a crisis stage.