I have a confession to make. During COVID, I did my share of stress eating. Pizza, potato chips and dip, fast food with fries. They don’t call it comfort food for nothing. Of course, it wasn’t one single meal or circumstance that led to my weight gain over the last year. It was probably 100 or so small decisions that created it. 

Managing cash flow in your business is the same. One isolated circumstance or decision won’t create a lack of cash flow. But, 100 or so small decisions over time will definitely do it. Let’s talk about one of those small decisions that is often overlooked.  

You don’t buy a piece of equipment or your office building on a line of credit. You also don’t finance your payroll for the month on a term loan payable over 3 years. Why? Because your building should be on a mortgage loan and your payroll should be funded through your line of credit. You want your source of funds (where the money is coming from) to match your use of funds (what the money is being used for).   

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