How Can a CFO Help a Small Business?

Businesses often have cash flow problems, which CFO’s find difficult to resolve. A cash flow problem in any industry can cause companies to miss payments on their accounts and this can result in a company’s credit rating or its ability to receive credit from outside sources going down. A CFO can resolve most of these problems by ensuring the company takes all necessary steps to prevent or remedy them. Often times they will need to come up with additional funding, but they can do this quite easily.

 

By having a CFO on staff it is much easier to manage cash flow problems as they do not have to take time away from running the business themselves. This will allow them to work on other aspects of the business in a stress-free environment. By keeping the focus on the important matters of running the business they will be able to resolve CFO issues with very little downtime required.

 

The CFO can provide a lot of assistance to small business owners when they have cash flow problems. When a business has cash flow problems they tend to miss interest payments on their loans and this results in a large balance against the business. Because of the large amount of outstanding debt a CFO has, they are often able to reduce the debt and bring the business back up to date with manageable monthly payments. CFO’s can also help businesses obtain new business loans when they have a poor credit rating because they can show potential investors that the business has a good chance of being successful.

 

CFO’s not only monitoring accounts receivable and accounts payable, but they can also provide an invaluable service to small business owners that have gone out of business. By using their expertise they can contact customers and collect payment from them on the remaining balance of their accounts. CFO’s may also work with account holders in order to recover money that has been missed from checks or from monthly payments. In some cases, a CFO can help businesses secure loans for the purchase of new equipment or property, which can prevent small businesses from going out of business.

 

One of the most common issues that result from cash flow problems is where accounts are being charged off. CFO’s are often able to help businesses recover charges on accounts that have been charged off by contacting the bank. By negotiating with the bank a CFO can reduce the amount of the charge off and may even get it reduced to a zero balance. In some cases, a CFO can even recover money that has been illegally taken from a client by settling a case with the lender.

 

A CFO can help improve cash flow problems in a small business by providing a solid analysis of the cash flow situation. A CFO can also negotiate with bankers on behalf of the small business. Negotiating with a lender can be extremely helpful because a CFO can negotiate a lower rate on loans and credit cards, which can save the small business a lot of money each month. Because many small businesses are cash flow negative they can be very difficult to manage on a daily basis and a CFO can be able to bring relief to these businesses by offering excellent advice on how to improve their cash flow problems.