Guide to Filling a Cash Flow Shortage

Sign up for a merchant account

Merchant accounts allow you to take payments by credit cards. For speedier cash flow, credit cards can't be beat. You get your money fast and customers are accustomed to paying with plastic.

I recommend: Visa, MasterCard and American Express all have super helpful small business sites that can get you set up to accept credit cards. You might also consider PayPal if you are an internet business.

Revamp your invoices

A messy, unclear or inaccurate invoice is far less likely to be paid on time, if at all. Make sure what you send out reflects care and attention to detail.

I recommend: Inexpensive, easy-to-use invoicing software can help pull in more cash. MyInvoices is an excellent choice.

Crank up your collections

If you aren't having any luck collecting from clients, call in the collections cavalry. Get a collection agency specialist to help you out.

I recommend: Find one at The Association of Credit & Collection Professionals.

Get a line of credit with a bank

Tap the credit line to cover short term cash shortfalls.

I recommend: Wells Fargo, Washington Mutual and Bank of America are three major banks that cater to small business and offer credit lines nationwide. Or check out the SBA CAPlines Loan Program which helps small businesses meet short-term and seasonal cash needs with a revolving line of credit.

Create a cash-in/cash-out budget

This will allow you to estimate your cash in and cash out over a six-month period.

I recommend: Go here to download a cash flow budget worksheet template that will get it done.