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Twelve Things To Do If You’re Cash Short

Cash Flow Solutions –
Twelve Things To Do If You’re Cash Short

Every business ends up short of cash from time to time. But there’s short of cash, and then there’s SHORT OF CASH. In the first case, you’re going to have to wait a few months to buy that new production machine. In the second, you need to figure out some way of covering payroll on Friday. No one needs, or likes that kind of “short.”

So, if you are so short of cash that you can’t cover payroll, what can you do to jump that gap, to allow you to get over the hump? Here are twelve things you can do to take the pressure off:

  1. If you’re borrowing from the bank, ask for an over-advance. Explain why you need it, how soon you’re going to pay it back, and how you’re going to keep it from happening again.
  2. Call your customers, and ask them for early payment on the invoice that’s due next week.
  3. Ask your customer for a prepayment or a deposit on their next big order.
  4. Hold off on paying EVERYTHING except for your payroll.
  5. Call your suppliers and ask them for a two-week delay in paying that next invoice.
  6. Look at your insurance payments, your rent payment or any other scheduled payment. Pay it the day before it’s late and you incur late fees.
  7. Ask your suppliers if you can pay them by credit card. That automatically gives you an extra 30 day terms.
  8. Continue to pay your most critical suppliers. If they can shut down your business because they won’t ship to you, don’t be late paying them
  9. Keep a clean record with a few suppliers – no matter what. This way, you can use them as continuing credit references.
  10. Pay the absolute minimum on your credit cards for the next few months.
  11. Take out a cash advance on your credit card.
  12. Credit cards are offering many balance transfer options. You can cash a balance check with your credit card company and pay only 2% to 5% to use their money for the next 12 months.


Business, just like life, has its ups and downs. Business goes through cycles. If you make careful decisions when things are tough, you will avoid major mistakes. Then when things loosen up, you’ll be in fine shape.


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