This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New Citibank® Small Business Pulse Finds Sales Growth Isn’t Enough To Keep Cash Flowing

Maintaining and increasing sales is the most important short term business issue for 74% of small business owners, 41% of whom cite lackluster consumer spending as the root cause, according to the Citibank® Small Business Pulse released today.

Both the cause and effect of weak sales lead to cash flow concerns. According to the survey, 50% of respondents have experienced a sudden cash crunch in the last 12 months. Despite the need for careful cash management, 78% of small business owners have given payment extensions to customers.

“We admire and support the resilience and commitment shown by small business owners who find ways to move their companies forward,” said Jerome Byers, head of Citibank Small Business. “In recent years, companies have tightened belts, gained efficiency and reinvented their businesses to survive in a tough economy.”


Managing cash flow is a job most small business owners won’t trust to anyone but themselves. Nearly three quarters (73%) say they are “on top of it” and manage their cash flow daily. Thirty percent of respondents say the greatest challenge to managing cash is slow/delinquent receivables and bankruptcies, while 24% blame late or non-payments for a sudden cash crunch in the last 12 months. Yet 23% of respondents find making a collection call the most uncomfortable business finance challenge – second only to reducing staff (35%). Referring to the need for sales, 28% report that their sudden cash crunch was due to sales that did not pick up as expected.

“A slow economy forces the small business owner to focus on daily finances,” said Byers. “That’s a difficult balancing act with the need to think broadly and strategically about business plans.”


Despite a quarter-to-quarter reduction in confidence, small businesses report slightly better business conditions than a year ago. In August 2012, 38% of respondents found business conditions positive, increasing from 34% in August 2011. Another 25% say business conditions are poor, relatively flat from the last survey in May (23%), but reduced significantly from 31% a year ago. Still concerned about the future, 85% of those surveyed believe the economy may experience another downturn. That number is slightly lower than the 90% who expected it a year ago.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.79 0.10%
FB $101.98 0.07%
GOOG $682.32 -0.12%
TSLA $150.99 0.35%
YHOO $27.04 1.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs