Cash flow and profit are two of the many financial terms and metrics to be aware of as a business owner, and both are important to measure the health of your business.
The net amount of cash and cash equivalents being transferred in and out of your business at a specific point in time.
Refers to the earnings that a business takes home after all the costs are paid for a given period. They often include non-cash items.
Most banks will look at the ability of your cash flow to repay a requested loan and the existing debt. The cash flow statement provides a detailed look at what happened to your business during a specific period. It demonstrates an organization’s ability to operate in the short and long term based on how much cash is flowing into and out of the business. The statement is broken down into operating activities, investing activities, and financing activities. It is ideal to have operating income exceed net income; this positive cash flow shows your company’s ability to remain solvent and grow its operations.
It’s important to understand a company can be profitable but still have no liquidity to support existing or new debt. A company may have large amounts of accounts receivable, and be profitable but have a working capital (or cash flow) problem. Net profits do not repay a loan, cash does!
Solutions to boost your cash flow – accelerate accounts receivable collections and/or stretch out disbursement of your accounts payable. These Mars Bank cash management tools can help you!
Make it easy and speed up your banking with online banking.
Scan and securely transmit checks for deposit from your PC to Mars Bank account.
Direct bank-to-bank transaction that moves money from your account directly into the account of someone else.
Consumers expect to be able to pay with credit and with debit cards. Merchant services enable you to offer your customers the latest payment processing products and services.
Check fraud is a growing concern. Positive Pay helps you quickly identify potential check fraud.
Our team of experienced banking professionals works to analyze and counsel your business for all your working capital needs. If you are interested in discussing your options in more detail, contact us today.