Find out how to build a fortress balance sheet and a cash reserve for your business. Also read about small business fraud masked as fake invoices and unordered office supplies!
As a business owner, cash is one of your most valuable commodities. Find out how to build a fortress balance sheet so your business can have the cash available when you need it.
Also read about small business fraud masked as fake invoices and unordered office supplies!
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In this issue:
A Fortress Balance Sheet Yields Cash
The worst time to ask a bank for cash is, ironically, when you need it most. The best way to solve this cash flow challenge is by building a fortress balance sheet.
The fortress balance sheet concept
Like a frontier outpost or an ancient walled city, businesses that prepare for a siege or attack can often hold out until the crisis passes or the cavalry arrives. What this means for your business is using banking analytics to develop a balance sheet your banker will love. Here are three concepts to use when developing your fortress balance sheet:
- Debt-to-equity ratio.
- Debt service coverage.
- Liquidity is key.
Beware of Fake Invoices and Unordered Office Supplies!
As a small business owner, the best way to protect your company from fraud is to learn the signs of scams that target businesses and share this information with your employees and colleagues.
Here are several types of scams that target small businesses, according to the Federal Trade Commission.