Hemorrhaging Cash Continues

Has your company experienced an uptick in once good paying commercial customers suddenly going past due? As a collection agency with offices in Edmonton, Calgary and the GTA we can help.

A new study released in early October by The Business Development Bank of Canada (BDC) says many Canadian entrepreneurs are focused on shoring up their balance sheets after recording a drastic drop in revenues and mounting debt during the first wave of Covid-19.

The BDC survey says the top priority of business owners is getting their financial houses in order, including reducing operating costs and improving cash flow.  Improving cash-flow starts with a robust accounts receivable process.

Investing in technology was also a priority for entrepreneurs, according to the study which also listed a focus on remote work, online sales and reviving growth as other key areas.

The study found that small and medium-sized businesses were hit hard by the crisis, with 76 per cent reporting a decline in revenues and profits during the pandemic.

Nearly half ending up laying off staff.  Most alarming is that 39 per cent of entrepreneurs took on more debt to survive.

A free copy of the full study can be downloaded by clicking here