3 pointers for businesses in a financial pinch

1. Make sure all payroll taxes are paid on time, especially those withheld from employees' paychecks. Otherwise, the IRS and state tax authorities can hold you personally and legally liable for these taxes plus penalties, even if your business goes bankrupt.
2. Take control of your cash flow. If you lack the revenue to pay bills coming due, prepare a short-term cash projection. Make a list of money owed to you, and collect as much of it as possible. Cut expenses to the bare minimum, and pay only necessary items like taxes and overhead costs. Work with suppliers and other creditors to develop a flexible repayment schedule. For more information about forecasting your cash flow.
3. Rethink borrowing. If you're tempted to borrow more money to ease your financial situation, consider carefully whether your business is really likely to do better in the near future or if borrowing money will only compound your debt problems. If you do decide to apply for a new loan or consolidate old ones, be forthright in disclosing your financial situation.

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