Posts tagged liquidity vs solvency

Coronavirus: Financial Triage for Small Business - Part 1

April 6, 2020 @ 11:38 AM · coronavirus, liquidity vs solvency, small business

Liquidity vs Solvency

If you are a small business, its easy to lose hope in such difficult times.  No doubt there will be many business casualties to go along with the many personal losses; but, for most businesses, I believe it’s much too early to give up.  What we have right now is a liquidity crisis. This pandemic is estimated to take over one trillion dollars out of circulation.  How much money will return to the world economies after it’s over is anyone’s guess.  If you can weather the storm until the virus passes, you have a chance.  It all boils down to careful, creative and courageous management of your cashflow, both inflows and outflows.   Sure, you can apply for more loans ......

Read More