Six article topics for Richmond, KY owners, plus three invented cash-timing cases: supplier terms on a restaurant's weekly food order, a one-month cash calendar for a therapy office, and the months when an auto repair shop pays three payrolls.
How can a business improve cash flow? A Richmond, KY sit-down restaurant's weekly food order
Cash flow gets better when money comes in sooner, goes out later or sits idle for fewer days. For a Richmond, KY sit-down restaurant, the weekly food order repeats every week, so a small change to it repeats too.
- Ask the produce and meat suppliers whether net-14 terms are available in place of payment on delivery.
- Order to the menu's actual weekly use, so cases do not sit in the walk-in past their dates.
- Take a deposit on large party bookings when the reservation is made, not on the night.
- Put the food order and payroll on different days of the week where the suppliers allow it.
- Keep a line of credit for a week when a large order and a payroll land together, and pay it down from the next deposits.
Illustration only, invented figures: a restaurant that pays $3,850.00 on delivery each week and moves to net-14 terms keeps two orders, $7,700.00 in this invented case, in its account at the switch. After that the weekly outflow is the same size, only two weeks later.
How to prepare a cash calendar for supplier payments at a Richmond, KY therapy office
A cash calendar lists each dated deposit and bill for one month with a running balance, so the low day shows up before it arrives. Illustration only, invented figures: a Richmond, KY therapy office starts the month with $6,400.00.
| Day | Item | In | Out | Balance |
|---|---|---|---|---|
| Day 1 | Opening balance | - | - | $6,400.00 |
| Day 4 | Card and insurance deposits for the week | $5,150.00 | - | $11,550.00 |
| Day 6 | Supplier invoice: exercise bands, table paper and linens | - | $1,240.00 | $10,310.00 |
| Day 11 | Card and insurance deposits for the week | $4,870.00 | - | $15,180.00 |
| Day 13 | Payroll | - | $8,600.00 | $6,580.00 |
| Day 18 | Card and insurance deposits for the week | $5,020.00 | - | $11,600.00 |
| Day 20 | Supplier invoice: hot and cold packs, ultrasound gel | - | $965.00 | $10,635.00 |
| Day 25 | Card and insurance deposits for the week | $4,930.00 | - | $15,565.00 |
| Day 27 | Payroll | - | $8,600.00 | $6,965.00 |
| Day 28 | Rent | - | $2,750.00 | $4,215.00 |
In this invented month the balance falls to $6,580.00 after the day-13 payroll and $6,965.00 after the day-27 payroll, then ends at $4,215.00 once rent is paid on day 28, $2,185.00 below where it started. A month that ends lower than it began is the cue to check the next month's calendar before placing a supplier order.
Three paydays in one month at a Richmond, KY auto repair shop
A biweekly payroll falls 26 or 27 times a year, so two or three months of the year carry a third payday.
Illustration only, invented figures: a Richmond, KY auto repair shop with a $7,350.00 biweekly payroll pays $14,700.00 in a two-payday month and $22,050.00 in a three-payday month. A line of credit draw of $7,350.00 for the third payroll, carried 16 days at an invented 14.25% annual rate, costs $45.91 of interest, figured daily on a 365-day year.
Those dates sit on the calendar a year ahead, so the shop can see whether a large parts bill falls in the same week as a third payroll and move the bill where the supplier allows.
What the Richmond, KY business funding articles cover: term loans, operatories, clinics, mowers, auto diagnostics and a credit line
- Term loans for practices and shops: one fixed payment for a single large cost.
- Dental operatory equipment, a laser and a 3D printer, and how they can be financed.
- Loans for clinics and therapy offices: diagnostic devices, a therapy unit and supply orders.
- Zero-turn mowers, a trailer and a dump truck for landscaping crews.
- Diagnostic and bay equipment for auto repair shops, plus technician payroll.
- A revolving line of credit for shops and clinics: the request, the limit, draws and interest.
By Ledgecrest Lending · Updated
