If there was any doubt that the old saying “cash flow is king” was nothing but just another cutesy cliché, the events as they have unfolded over the last couple of weeks surrounding Covid-19, will likely never again be considered simply cliché (at least for the next generation. We are, by nature, poor students of history).
Trevin Stratton @TrevinStratton with the Canadian Chamber of Commerce @CdnChamberofCom provides us with the dour reminder that the average SME (small and medium sized enterprise) has an average cash buffer of only 27 days. With 90% of private sector employment being provided by SMEs, and with payroll being among their highest input costs we are looking straight down the barrel at the beginnings of both an economic and social crisis in Canada.
Refer to the infographic below and weep.