Solvency in business implies that your business has more money coming in than going out. If your business is not solvent, this is an announcement that you are spending more money than you have. If this is the case, your emergency alarm bells ought to be sounding off and warning you to place an immediate hold on all spending. And louder yet, you need to have urgent sirens in your face demanding stepped up product promotions.

It is basic common business sense that is often lost in the heat of handling day to day situations, but if you don't take heed, you are headed for bankruptcy. As a small business owner, it is your responsibility to tighten up the reins and take control. If your business spending is out of control and your sales are not meeting expectations, no influx of cash in the form of credit or loans will prevent you from going under.

If you are experiencing cash flow issues, no matter how big or small, take the following steps to regain and retain business solvency:

1. Increase your product promotion campaigns.
2. Spend money only on products or services that have an ROI.
3. Create a set aside account for projected business needs.
4. Establish a debt repayment plan.

A potential commercial lender will scrutinize your ability to manage your company's money. Business solvency indicates that you are doing what is required to establish a worthy business credit score.