Tuesday 22 April 2014

Why Businesses Need Cash Flow

Cash Flow – a phrase that will bring fear in to the heart of anyone who is operating a business today.

To borrow a definition from the much loved Wikipedia;

“Cash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, limited period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation”

Without cash flow there is no business, as to run out of available cash means that your business will not succeed. Furthermore, we know of many small (and large) businesses that do not know, right at this minute, what their cash flow is. Why would you take your eye off the ball when it is so vitally important for your business?

The phrase ‘cash flow problem’ is also bandied around a lot, and again most people wrongly interpret the true meaning of this. A REAL cash flow problem happens when a business is, on paper, making money however there is no cash available. The magic question - where has the money gone? In most businesses this cash gets gobbled up by things like inventory, debt payments, and invoices unpaid. This means that as a business, no matter how much money you are pulling in, without a healthy cash flow there is no business.

Now we are going to talk about Fred. You may remember him from a previous blog. Well we caught up with Fred yesterday, over a pint (or two or three!). You may remember that Fred was trying to go his own way in the world of Sports Arbitrage …. Well he’s still trying but going nowhere fast (unlike the winner of the Grand National, Pineau De Re).

The main problem he is having is cash flow – in that he places a bet, sometimes they win (he’s not mastered the art quite yet) and sometimes they lose. When the bets win Fred is finding that he cannot transfer his money quickly enough from his betting site, back to his funding account/bank/card etc., to then re-deposit funds in to a different betting account that is needed for the next bet. So in effect, Fred has a cash flow problem.

We are pleased to report that things like that do not happen with us here at Winning Express. We have the funds, and expertise, to ensure that no matter what transactions we have undertaken there is always money in the pot for more - we don’t have to wait days for money to become available so we can go again – unlike poor Fred!

The price for doing this is only a small quarterly fee, giving you the freedom to get on with your lives whilst we look after the art of Sports Arbitrage.


Bearing this in mind, if you fancy your hand (pardon the gambling card pun!) at Sports Arbitrage you won’t go wrong by leaving your hard earned cash to us to invest, we promise we will not only look after it well but nurture it so it grows in to your future…

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