JP Morgan Reports "Cash is King"
The JP Morgan Institute released a report detailing the behavior of over 600,000 small businesses in their bank network. Their conclusion is that “cash is king” and that “cash reserves are a critical tool for meeting liquidity needs”. JP Morgan reported that businesses held average daily bank balances equal to 27 days’ worth of expenses.
Here at Provider Web, we have analyzed the bank statements of thousands of applicants for our financing products and have not seen results consistent with the JP Morgan study. The typical account we have analyzed has less than one weeks’ cash on hand to cover unforeseen interruptions.
If you are currently running your small business with limited cash in the bank, you should consider a working capital line from Provider Web Capital. We can help you get the cash you need into your bank account to give you the peace of mind that your business is ready for any unforeseen bump in the road.