If there is one thing which affects business significantly then that is Cash Flow. Smaller businesses often fail just because they face a lack of availability of funds. Shortage of funds can be the biggest factor causing a shutdown of the firm than any other factor.
Cash Flow for a CA
You can also face stiff situations if you are running your own firm as a Chartered Accountant. Cash will come into your account through your clients who purchase your services. At the same time there will be some cash outflow in the form of various expenses like rent, taxes, etc. You may be in trouble if more cash goes out than what comes in. You stand at risk of an overdrawn bank account. You will have to find a way to cover your overdraft. Such situations arise generally under two circumstances. One is when your business is new and the other is due to seasonal changes. These situations of cash flow can be overcome by availing a CA Loan. It may prove helpful in managing such situations.
What are Flexi Loans
Some banks and NBFCs are extending this facility to their borrowers. In here you are provided a flexi account in which you can deposit or withdraw an amount to a certain limit. Also, you only pay for what you use out of that limit.
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