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Article details provided by Shantel Laird, AVP, Senior Commercial Deposit Officer
 Managing cash flow can be particularly challenging during seasonal fluctuations.
But with proper planning, businesses can weather these cycles with confidence. Shantel Laird, AVP, Senior Commercial Deposit Officer at Croghan Colonial Bank, shares her insights on how businesses can stay ahead of the game.
"It’s essential for businesses to anticipate both cash flow dips and peaks throughout the year," Shantel explains. "Understanding your revenue patterns allows you to build up reserves during high-revenue periods, so you can maintain smooth operations when cash flow slows."
Shantel also emphasizes that managing cash flow requires a close look at upcoming expenses, especially as seasons change. "For industries like agriculture, where profits are collected at the end of the season, October is a great time to start planning ahead. Ask yourself: What are your net profits? What expenses are coming up next season—equipment maintenance, supply cost increases, or other needs?"
 When discussing liquidity, Shantel highlights the importance of having a cash reserve. "Just like households, businesses need a liquidity strategy to cover future expenditures. One of the first steps we take with our clients is reviewing their reserve funds, ensuring they have enough liquidity before focusing on interest rates."
For businesses with extra funds, she recommends, "Money markets are a great, easily accessible option for keeping funds liquid. If you're more certain about upcoming expenditures, consider laddering your funds into CDs—split across 6, 9, or 12-month terms, or whichever terms match future needs. This way, you're balancing liquidity with earning potential."
She also stresses the importance of speeding up the collection of revenue. "Tools like ACH payment collection or accepting credit cards can get cash flowing into your accounts faster, minimizing wait times. On the flip side, if you need to hold onto cash longer, paying bills by ACH or credit card can help maximize your working capital."
Finally, Shantel advises all business owners to sit down with a trusted advisor, like Croghan, to develop a proactive cash flow plan. "The most important thing a business can do is have a thorough conversation about liquidity and plan for the next year. If cash flow looks tight, our Commercial Lending Officers can explore borrowing options like an operational line of credit to ensure you're ready for the season ahead."
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