What is Cash Flow Banking and How Can it Be Managed?

Cash flow is an important part of every business's financial health. It's the cash that provides liquidity and allows a company to fund its short-term obligations and unforeseen expenses. How well a company manages its cash flow is one indicator used by lenders and investors to determine if it can repay debts and continue operations. While a healthy business should have a positive cash flow, if a company's cash flow is negative it may be unable to obtain a loan or line of credit, and may even need to file for bankruptcy.

If you manage the business well, then it will have an advantage over its competitors. Cash is king in today's economy!

Cash Flow Banking is a concept that was brought to light by Robert Kiyosaki and Sharon Lechter in their hit book "Rich Dad Poor Dad".  The basic premise of Cash Flow Banking is to always be looking for ways to eliminate expenses (in the same way as reducing debt) and increase revenue (again, like increasing income).

You already know that you should have a positive cash flow, but what can you do to improve it? Here are some tips:

1. Review your expenses and find ways to reduce them. This may include renegotiating contracts with vendors, renegotiating terms with creditors, or finding cheaper alternatives for supplies and services.

2. Increase your revenue by finding new ways to promote your company and find new customers. Use Facebook, Twitter, Instagram and other social media platforms to let everyone know what you're doing.

3. Get creative with the expenses that remain by trying creative funding options such as crowdsourcing on sites like Indiegogo or GoFundMe. There is a lot of competition out there for investors, so you need to stand out from the crowd!

4. You may also want to try "Cash Flow Banking" �" this is where you lend your money at a high interest rate and then charge an even higher interest rate. This will pay off your existing debts and give you some extra income at the same time!

The Cash Flow Banking concept is simple, but it can make a huge difference to your company's financial health. By making these adjustments to the way your business operates, you will be able to keep cash flowing and stay profitable!

Author's Note

The Cash Flow Banking concept is simple, but it can make a huge difference to your company's financial health. By making these adjustments to the way your business operates, you will be able to keep cash flowing and stay profitable!