How Much Cash Should You Have On Hand at All Times

Let's not talk should - let's talk must.

You must have as a minimum all funds necessary to pay for your obligated labor - up to the moment. Labor is an issue of trust - your employees are working for you, trusting you will pay them. They do not have the capacity to be flexible regarding the timing of payment. Your payment is critical and must be made as agreed, therefore, you cannot speculate on the timely payment of customers to fulfill your obligation.

For this matter, you must have the cash when needed - Factoring is a reasonable alternative to relieve the pressure of this obligation.

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