Moody’s Corporation is partnering with the Foundation for Small Business Development (FFSBD) to connect small businesses with cash flow forecasting solutions and other financial resources.
The company announced in a press release Tuesday (May 21) that it will collaborate to provide cash management tools and financial education for the small business assistance network of Small Business Development Centers (SBDCs).
Citing research from Wakefield Research published earlier this year, which found 61 percent of small businesses regularly struggle with cash flow, Moody’s said connecting small businesses with education and cash flow forecasting technology through the SBDC Network will provide boosted support for the nation’s community of small to medium-sized businesses (SMBs).
The press release also pointed to March 2017 research that revealed 82 percent of business failures can be attributed to poor cash flow management skills, or a poor understanding of how to manage cash flow.
The collaboration comes in the form of a three-year grant, also in partnership with CashFlowTool.com creators Finagraph. SBDC advisors can access the resources online and in-person at SBDC events, providing those advisors with certification to offer their own small business clients cash flow management expertise.
Small business clients of the SBDC can be connected to a six-month subscription of CashFlowTool to manage and forecast cash flows.
“Effective cash flow management is essential for every small business in the U.S.,” said Moody’s Analytics Executive Director Stephen Tulenko in a statement. “Our work with the SBDC is an important part of Moody’s ‘Reshape Tomorrow’ initiative — our global financial inclusion program, which empowers entrepreneurs and untapped communities with the knowledge and resources they need to create a better future.”
Earlier this year Moody’s announced another partnership with CapX Partners, an equipment financing company that is integrating Moody’s Analytics technology to enhance its underwriting and risk management processes in an effort to broaden access to equipment financing for small businesses.