3 Signs Your Cash Flow Isn’t Working And How to Fix It

It’s likely that your business is spending cash faster than it’s coming in. Maybe customers are taking 30 to 60 days to pay you, but your bills are due in 15. Or maybe you’re waiting until the end of the month to send invoices, creating unnecessary delays in getting paid. Either way, how and when you pay others versus how you get paid is a classic cash flow mistake that has destroyed many small businesses. But you’re different! You know that a proactive business owner doesn’t have control of their cash flow unless they:

• Have a checking account designed for businesses to streamline record-keeping and handle a high volume of transactions.
• Send invoices immediately after work is completed, don’t wait.
• Review your customer payment terms and shorten them as necessary.
• Talk to your vendors about terms and stretch them if possible.
• Create a weekly cash calendar to make visualizing your timing gaps easier.

2. Vendor Payments Keep Getting Pushed Back

When cash is tight, one of the first things to slide is vendor payments. It starts small — “I’ll pay this one next week” — but can quickly become a pattern. And while it may free up cash temporarily, it creates long-term strain.

Consistently delaying vendor payments can lead to late fees, strained relationships, or worse: vendors pausing services altogether. It can also hurt your reputation and credibility in the business community. But you value your reputation, your business, and your credibility in the business community! That’s why you decide to:

• Set a payment schedule that aligns with your actual cash flow.
• Use digital tools like ACH to control exactly when payments go out.
• Prioritize vendors who offer discounts for early payments or charge penalties for delays.
• Communicate! A quick call to a vendor about timing often builds trust and may open the door to more flexible terms. (This one is HUGE!)

3. You’re Behind on Invoicing or Following Up

It’s easy to fall behind on billing when business is booming. But every day you delay an invoice is another day your cash sits on the sidelines. Worse, if no one is following up on past-due invoices, you could be losing money you’ve already earned.

Banking for small businesses isn’t just about how much revenue you generate, but about how efficiently you can collect it. And since you’re committed to staying ahead, you:

• Establish a standard process for sending invoices promptly. Ideally within 24 hours of job completion or product delivery. 
• Offer easy payment options such as credit card, ACH, online portals, to eliminate friction.
• Follow up. A quick, friendly reminder email often prompts faster payments.
• Review aging receivables regularly. Know what’s overdue, by how much, and who needs a nudge.

Tools That Help You Stay in Control of Your Cash Flow

The right tools can make all the difference when it comes to managing cash flow. Many business owners don’t realize their bank can provide more than just accounts. At Kearny Bank, we provide solutions that streamline your payables and receivables and keep your money moving efficiently. Thanks to your strong relationship with your banker, you now have access to services that help you manage, control, and master your cash flow:

• ACH Origination: Set up secure, scheduled electronic payments to vendors and employees.
• Remote Deposit Capture: Deposit checks from your office, saving time and getting funds into your account faster.
• Positive Pay: A fraud-prevention tool that helps protect your account by verifying checks and flagging suspicious activity.
• Business Online Banking with Alerts: Stay on top of your cash position with customizable alerts.
• Lines of Credit: Short-term financing to bridge timing gaps between receivables and expenses.

Cash Flow Doesn’t Fix Itself