When Credit, Not Cash, is King

It might seem strange, in a downturn pinched by a credit crunch, to suggest thinking about credit. But the lag between delivery and payment – that time when you’re waiting on customers and your suppliers are waiting on you — is nothing new. But in tough times, it can get worse, as the domino effect of cash flow hits your supplier – and then you. No doubt you have some reserves on hand (right?) for rainy days like this. But don’t forget about credit – not just a business credit line, but an ongoing business credit card that you can use in a pinch.

There are advantages to both cash and credit, but don’t forget, use of credit can help keep your credit history in good standing, even if you’d rather keep the debt to a minimum in these times. Here are four tips for using credit to help you manage your cash flow and get back to the work of delivering great products and services…