“Cash is King”
This is not a new phrase; people have been saying it for decades and, in fact, while the origin seems to be unknown, the meaning is clear. Cash (i.e. money in the bank) is the most important asset to businesses. If there are financial difficulties, then having cashflow issues tends to be at the heart of it. Thinking back to one of my lockdown Netflix binges, ‘The Queen’s Gambit’, the King is the most important piece in the game. If the King is in trouble, so are you. If it falls, you lose. Cash allows businesses to pay ongoing overheads; wages, rent, invoices – you get the idea. It keeps businesses going. The King keeps you in the game.
With the strange times we find ourselves in, preserving cash is more important now than ever. The current pandemic has meant that many find themselves in a situation where there is a reduced level of cash flowing into the business due to restricted operations in many industries – however, the outgoings remain. Reduced income and large outlays of money will swing the precarious balance of cashflow
What’s the real-world impact?
What happens when that vital Software renewal is due, a business-critical project that needs to be implemented, or an unexpected expense of laptops and infrastructure to ensure staff can work effectively and safely from home? Figuring out how to pay for these expenses in the middle of a global pandemic is not, I dare say, something that many of us would have prior experience of.
What we do have experience of, however, is spreading the cost of products and services into small, manageable bites. This is something that we, as consumers, have been doing in our everyday lives for years with subscription-based models – think Netflix, your car on PCP, or even your phone contract.
We choose to keep cash in the bank and spread the costs; the ability to finance things we need (and want) is everywhere in the consumer world – feeding our online shopping habits through the likes of Klarna, or Clearpay, readily available to allow you to ‘buy now, pay later’.
Translating consumer habits into the business world
So, why not take this same ideology and apply it to your business. Keep the cash in the bank and use the financial solutions that are available. We understand that it is not a ‘one size fits all’ and that is why it’s important to consider a range of options to pick the one that is right for you. My team and I work with a range of partners to help you assess the flexible options and choose the one that suits your needs – whether that is a payment deferral to align with your budgets, or a model which allows you to return the kit in line with your refresh cycles - keeping tech up to date while also saving money.
Financial Solutions offer you the ability to buy the products and services your business needs now, while paying for it in manageable bites that help maintain that balance of cashflow. Keep Cash, as it is King.