If revenue slows, check what changed before taking on another payment. Review demand, seasonality, inventory, and staffing against your recent sales and expenses.
Find the gap
Late customer payments can create a cash shortage even when sales are healthy. Empty shelves can cost you orders. Weak demand or rising operating costs may require a change in pricing, purchasing, or staffing.
Use your records to identify the problem. Borrowing to cover recurring losses leaves the underlying issue unresolved.
Price a specific response
For an inventory shortage, calculate the order cost and expected selling period. For hiring or marketing, set a budget and a way to measure the result.
Then compare the proposed payments with expected cash receipts, including a slower-sales scenario. The plan needs to cover the new obligation as well as the expense you are trying to address.
