Paulette was closing the door on her bakery for the night when her accountant called.
"I was reviewing your accounts and wanted to alert you that you currently don't have enough cash to pay the quarterly loan payment that will be due in three weeks. I don't want to alarm you, I think you need a plan so you can keep your loan current and still have money to cover other expenses.
Pauline responded, "I appreciate your call. I try to make my loan payments on time but sometimes it's hard to have enough cash at the right time. I delivered two large orders for restaurant customers but I haven't yet been paid. They're big customers but they;re slow payers. I hate to be too pushy about payment because I don't want them to take their business elsewhere."
Her accountant responded, "I know it's hard to always meet your cash needs and I know your bank appreciates how timely you have been in the past on your payments. Let's meet to talk about ways you might make sure you are building up a good cash balance in advance of your next loan payment."
**please comment by discussing why Paulette's accountant would be concerned about\ the loan payment if Paulette was currently not behind in her payments? How should Paulette deal with important customers who do not pay their bills on time?***
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