7 Ways to Unlock Cash & Profit in Your Business…

1. 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: 1.Review: 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 collector); 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. your Invoices (accounts 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

2. 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 need.