7 Ways to Unlock Cash & Profit in Your Business…
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After more than 30 years of lending to businesses, PMF Bancorp has seen many methods to improve cash flow and profitability.

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7 ways to unlock cash profit in your business

7 Ways to Unlock Cash & Profit in Your Business…

After more than 30 years of lending to

businesses, PMF Bancorp has seen many

methods to improve cash flow and profitability.

It is cliché, but the old saying that “Cash is

King” is actually not far from the truth. As you

know, even if your profits are large, without

cash flow to pay the rent, you are out of

business. This is the blessing and the curse of

doing business with and selling to large

companies as they take forever to pay. It is

almost an unwritten right that large corporations

expect credit or terms to pay their invoices.

Well, PMF has 7 simple ways to increase your

cash flow and profit that can be implemented

easily as follows:


receivable) should be monitored on a weekly basis;

2.Collections: If your business is carrying accounts receivable greater than a typical

employee’s salary then you should have a person dedicated to their management (a soft


3.Make a Deal: Don’t be afraid to talk to your customers (even the bigger ones) to get them

to pay early for a small discount (this is common and these funds can be arbitraged to

potentially pay suppliers early for a discount as well);

4.Relationships: Visit your largest customers once a year at minimum and twice if possible

as they can pull strings during a lean period or if processing your invoices is delayed;

5.Credit Monitoring: most companies evaluate credit once and forget it…this is wrong as

credit on larger customer should be monitored at least annually to make sure no adverse

changes occurred which could impact your sales and your invoice repayment;

6.Common Sense: don’t sell customers that are too big as you will run out of cash. Even if

you complete the order, what will happen if payment is delayed or another good customer

needs material…grow with common sense (i.e. doubling size in one year is a red flag for

you and most lenders);

7.Financing & Invoice Factoring: Make sure to have financing lined up and set when you

DON’T need it because I guarantee you it won’t be around when you do need it.




Financing is really essential to a small to medium size business that is growing. Owners and

executives of these companies are always optimistic and in many cases try to put off needed

financing to save costs; however, this is not the right mind set. The owners and execs should

make sure to have a financing deal already signed and on the shelf ready to use. Even borrowing

a little from the line facility and testing out the process when it’s not absolutely necessary is

useful to make sure everything is ready to rock when the big sales start to arrive. PMF Bancorp

has been providing invoice factoring, lines of credit, trade finance, and other short working

capital solutions for businesses to grow for over three decades. Often, smaller businesses are

7 ways to unlock cash profit in your business

rejected by the traditional banks as not having enough credit, profit, equity, etc., but PMF

Bancorp has developed special programs that still provide a business with the lines of credit they