Strong Revenue but No Cash? How Advisors Solve Payroll Problems
Ever Had a Client Who Looks Great on Paper- but Is Scrambling to Make Payroll? Quick summary: Some businesses look successful on paper but still struggle to pay employees. This happens when cash flow canβt keep up with growth. Smart advisors help clients spot these gaps early and use flexible funding to stay stable. This happens more often than most people think. A business can look very successful from the outside. Sales are high. Revenue is growing. Reports look strong. But behind the scenes, the owner is worried. Cash is tight. Payroll is stressful. Bills are piling up. If youβre a CPA or business advisor, youβve likely seen this before. Letβs break it down in a simple way β why this happens, why banks often donβt help, and what smart advisors do instead. Revenue and Cash Flow Are Not the Same This is the biggest misunderstanding in business. Revenue is how much money a business earns. Cash flow is how much money is actually available right now. A business can make a lot of money on paper but still struggle to pay employees. Why? Because cash can get stuck. Common Reasons Cash Flow Gets Tight Even healthy businesses can run into cash problems because of: Customers who pay late Seasonal ups and downs Hiring new employees too fast Buying equipment or inventory Growing faster than cash can support Payroll doesnβt wait. Rent doesnβt wait. Vendors donβt wait. A Real Example From a CPA Partner A CPA reached out last month about a client. The business was doing record sales. But cash flow was still negative. Customers were slow to pay. Growth costs were adding up. Payroll was becoming stressful. The numbers looked fine. The stress was very real. Why Banks Often Donβt Help in Time When cash flow is tight, banks are usually slow. They often require: A lot of paperwork Strong credit history Long approval times By the time a bank gives an answer, payroll is already due. That delay can hurt the business. A Better Option: Flexible Business Funding Instead of sending the client to a bank, we focused on speed and flexibility. The goal was simple: Cover payroll Keep the business running Give customers time to pay their invoices Reduce stress for the owner The funding helped bridge the gap. Employees were paid. The business stayed open. Why This Matters for Advisors Business owners donβt just want reports. They want peace of mind. Advisors who help protect cash flow: Build trust Strengthen relationships Become long-term partners Helping a client survive a tough moment matters more than any spreadsheet. Simple Questions Advisors Should Ask These questions can reveal problems early: Do you always have enough cash for payroll? What happens if customers pay late? How many weeks could you operate if cash slowed down? Do you have a backup plan for cash flow gaps? Simple questions can prevent big problems. The Bottom Line Growth is exciting. But growth without cash can be dangerous. Cash flow keeps businesses alive. Advisors who help clients stay liquid, calm, and prepared become trusted partners β not just service providers. So hereβs the big question: When cash flow gaps show up, whatβs your go-to move? What This Means for You If you work with business owners, cash flow issues will come up β even when revenue looks strong. Having a plan before payroll stress hits can: Protect your client Reduce panic decisions Strengthen long-term trust If youβre an advisor who wants a faster, simpler way to help clients bridge cash flow gaps, flexible funding options can make a real difference.
How Bravo Foods Grew Despite Bank Resistance: Flexible Funding in Action
Quick summary: Sometimes a business looks risky on paper but has real opportunities. Bravo Foods, a 13-year family-run food manufacturer, faced bank resistance even as they secured major airline contracts. By looking beyond the numbers, flexible funding helped them scale fast and capture growth. The Client Bravo Foods is a family-run food manufacturing business with 13 years of experience. They work in a highly regulated, competitive space and have built strong relationships with major airlines, including American Airlines. The Opportunity Bravo Foods won a big contract to supply thousands of meals to United Airlines. They were already supplying American Airlines, so the growth potential was hugeβbut the timeline was tight. To meet demand, the company needed money to: Hire additional staff Increase inventory Meet strict food safety and compliance requirements Time was critical. Waiting wasnβt an option. The Challenge Even with strong fundamentals, banks were hesitant. Recent financial statements showed losses Banks focused on historical numbers, ignoring future revenue potential Lenders paused, leaving Bravo Foods without the capital needed to act For a fast-moving opportunity, delays could mean losing the contract. Our Approach At National Business Capital, we donβt just look at one snapshot. We dug into the details and found what truly mattered: High-credit borrower Strong receivables tied to airline contracts Proven industry relationships in a specialized, high-growth sector Instead of letting past losses dictate the outcome, we focused on potential and cash flow projections. The Outcome Funding was secured quickly, allowing Bravo Foods to: Scale operations to meet airline demand Execute new contracts with confidence Strengthen its position in a specialized food manufacturing niche The projected result? A 50% increase in revenue and a clear runway for continued growth. Why National Business Capital We treat your business as more than a line on a balance sheet. When others see past losses, we see potential When fundamentals are strong, we find ways to make growth happen If your business faces bank resistance but has a real opportunity, we help you move fast