For small business, unreliable cash flow can be catastrophic. Each year, poor cash flow forces many small businesses to close. Even a short-term cash flow problem can make it tough to make payroll, pay rent or buy supplies.
There are many reasons for cash flow issues. A slump in sales, seasonality, unexpected expenses and late-paying clients. Late payments, in particular, affect many small businesses, making it hard to just keep the lights on, let alone grow.