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    ​How To Manage Your Spring Cash Flow​

    ​After months of low production, it’s not uncommon for mulch producers to run into challenges with cash flow as spring begins.  Those challenges can make it difficult to meet your basic financial obligations right as you are preparing for the busiest time of the year.

    Cash flow is the net amount of cash and cash-equivalents that flow in and out of your business. These are accounts for everything a business pays out, including payroll, suppliers, loan payments, utilities and more. It also accounts for everything flowing into your business from sales, accounts receivable, loan advancements, etc.

    Having cash on hand is critical for paying bills, paying employees and buying raw materials to produce colored mulch. Here are four things you can do to improve your cash flow and keep your business running smoothly.

    1. Start a line of credit. With a good business credit score, this may be the easiest option. Taking out a loan can help bridge the gap between the slow season and when sales pick up and cash starts flowing in. Be sure you only borrow an amount that you will be able to pay back in full once your cash flow situation improves during the busy season.
    2. Collect payments sooner. After making a sale, many colored mulch producers provide their customers an extended payment term, sometimes up to 90 days. If cash flow is an issue for your business this time of year, consider scaling back to a shorter payment term to improve your cash flow sooner. If this is not an option, you can also consider offering an incentive to customers who pay their invoice sooner.
    3. Cut costs. This is easier said than done because there are many costs that are unavoidable for a business, such as mortgage, rent, utilities, etc. However, there are a number of costs that can be reduced by shopping around. Check to see if you can get better prices on your insurance premiums, internet and phone services as well as subscription-based software services. Look over your budget each year to see if you are paying for products and services you’re not using, or that you could do away with without losing efficiency or productivity.
    4. Sell your old equipment. From time to time, you are going to need to replace equipment for your business. This could be purchasing new computers and printers, new vehicles or even a new coloring system. When you make upgrades, consider selling the old products to inject cash into your business, or trade them in, if possible, to reduce the amount of outflowing cash when you make upgrades.

    Boost cash flow by selling your old coloring system.

    If you are ready to upgrade your coloring equipment, your territory manager can help you sell your old coloring system on And, if you’re on the market for pre-owned equipment, we can help you find what you’re looking for.

    We also offer lease options, making the world’s most efficient coloring equipment the most cost-effective choice for your mulch production operation.

    Explore our resources page​ for more business solutions. If you’re ready to sell your equipment and want a little help getting the word out, contact your territory manager today.​