As the year winds down, a number of clients are suffering from cash flow drop offs. Cash is getting tighter, their clients are not spending, nor are they rushing to pay their bills. They are waiting for signs that the economy will be getting better. It may be a bit of a wait.
I have a couple of clients looking to get out of the business all together. I think I have 5 or 6 listed with broker at this moment trying to get out of business with a sack of cash for their retirement.
Though one is in the long process of a divorce, thus the sale. But he is looking forward to his next chapter, even if he has no idea what it will be.
But I digress, banks are hesitant to give loans. The government handed out all of their cash and are now receiving payments on the large balances that were handed out to businesses.
So, it is not surprising that cash is tight in smaller businesses. My clients range from start-ups to roughly $7mm category. All of which are deemed to be small businesses, if not very small business per the government statistics.
Small businesses rely on small businesses for their goods and services, so cash remains tight all around.
Plan accordingly and do what you can to survive and flourish.