Cash Is King

The Problem With Ad-Hoc Marketing - Agapi Marketing - Sept. 2015 Newsletter

Let The Cash Flow In!


For small to medium size business owners, understanding cash flow can literally be the difference between survival and failure. In fact, listed cash flow problems among the top 10 reasons why small to medium enterprises (SME’s) fail.

Daryl Turko, owner of The Interface Financial Group (IFG) in Calgary, points out most people believe cash flow problems occur in businesses with slow sales, but rapid growth can also trigger a cash deficit.

“There is a difference between profit and cash flow that business owners should understand,” Turko said. “Even businesses with great sales can get into a cash crunch waiting to get paid.”

Watching the inflows and outflows of cash in your business is a critical management tool SME business owners can forget.

Turko offered the following tips for business owners to keep the money flowing properly:

Develop a cash flow statement: A cash flow statement enables a business owner to analyze cash flow over time.
●  Accelerate cash receivables: Provide incentives to your customers for paying early. Accelerate the billing process by sending out bills weekly instead of monthly.
●  Slow down payables: Establish trade credit with suppliers. Negotiate longer payment terms.


The Interface Financial Group offers a service called “invoice discounting” through which it provides cash for a small percentage of accounts receivable. The IFG program allows businesses to use the service as often as they would like without commitment.

Daryl Turko

Daryl Turko is owner of The Interface Financial Group, Calgary, AB, a provider of invoice discounting services.