“No plan survives first contact.” We’ve all heard the phrase. It can apply to business or bedtime negotiations with your toddler. You made a budget in the cold of January, assessed your goals for the year, and an unexpected opportunity has drained your capital reserves by July. Despite your best efforts, you’re tight on cash, but your employees still expect a paycheck. Where do you turn? Here are a few things to consider to get through your cash crunch.

• Speed up your receivables– Do you have a large customer that is dragging their feet? Speeding up collection time by even a few days can greatly improve your cash position on a month to month basis.
• Liquidate excess equipment- That forklift you purchased two years ago when things were booming is now collecting dust in the corner. Be honest with your equipment needs and liquidate unused or underutilized equipment.
• Revaluate credit cards– Credit cards can work in a pinch, but the interest and fees that accumulate if you can’t make payments on time can cripple your business.
• Beware of online lenders– The decisions may be fast, but the repayment terms can make credit cards and payday lenders look friendly.
• Reexamine sales prices - Does your product or service need a slight price increase? Have economic forces raised your cost of business, but your prices haven’t caught up? Think about tariffs, minimum wage increases, etc.
• Request a line of credit- Talk to you bank about a line of credit. It can be tied to a specific project or to your accounts receivable, generally at a much lower interest rate than a credit card.
• Consider a cash out refinance– If you bought your building a few years ago and have some equity built up, it may be time to cash out some of that equity and get a longer term, fixed rate loan.

Determining the next step for your business can be challenging, but we’re here to get to know your business so we can help you find the right path. Call Cameron today at (708) 946-2246 or visit us online at www.firstcbt.com.

About First Community Bank and Trust
First Community Bank and Trust is a privately-owned bank. Established in 1916 First Community Bank and Trust has been serving Beecher, IL, Peotone, IL and the surrounding communities for over 100 years. Our commitment to providing the best banking products and services is matched only by our outstanding customer service. We offer traditional community banking services, including mortgage, consumer, and commercial lending, as well as state of the art electronic banking services.

Press Contact:
Bridget Goedke, Marketing Assistant
First Community Bank and Trust
(708) 946-2246
bgoedke@firstcbt.com