Many business owners think about cash flow only when their cash reserves are low.

Small business owners, however, know that for them "cash is king."For many businesses, getting paid isn't the problem - it's when they are going to get paid that causes stress and other issues.Sporadic cash flow is a stressful experience because the consequences can include delayed paychecks to employees, missed bill payments or stalled growth due to an inability to take on new clients.So, how can business owners avoid putting themselves at the mercy of clients and when those clients pay? The answer could be a line of credit.Seeking a line of credit before you need it is a smart decision for business owners.Think of this as a type of insurance for your growing business. Even if you don't need it now, you will always have a reserve even if you have to pay a little interest.Having a line of credit available will give you the ability to immediately land clients who need your services and not wait until you can secure cash to front your expenses before cash starts coming in.A business owner's time is his or her most valuable resource, and is better spent growing and managing the business than fixing a cash-flow crisis.Having sufficient working capital in place to take care of sporadic cash flow - whether it's for a cash reserve or funding source - gives you breathing room so you can focus on your priorities and sleep better at night.Being prepared also allows you to negotiate from a position of strength. Shopping during a crisis, like going grocery shopping when you're hungry, makes you easy prey for shady financiers.Many short-term lenders offer confusing terms or long-term contracts with hidden fees to lure in clients who don't have time to do their research.Business owners looking closely at their cash flow should also consider the ROI of financing and not the costs alone.Financing is almost always a better alternative than delaying payroll or turning down business. A new business owner focuses on the cost of financing; an experienced owner knows that the hit to morale from delaying payroll or the lost profit from passing on a new client are both more costly than the short-term cost of financing.New business owners also need to know their options.Experienced business owners know a single quarter of bad cash flow can spell disaster for a small business.The solution is to find financing options before a crisis hits. While understanding your options is the first step, a recent survey revealed that 40 percent of small business owners said they couldn't explain any of the small-business financing options available to them.The take-away is to plan ahead. A cash-flow crunch is disruptive for a business.The best time to think about cash flow is before you have a need, not when you're going into a high-stakes business meeting to land that big client.CCEDC offers low interest PIDA loans that include working capital and lines of credit. Contact us for more information or check out our website at

www.carboncountychamber.org.