The Family Business Money Series
Beyond the Debt: Building a Cash-Rich Family Business
Debt was just part of doing business until it became a problem they couldn’t ignore.
From her early days as a banker to her 30+ years guiding multigenerational family businesses, Betsi Bixby shares real-life stories of leaders who stopped tolerating debt and started mastering their cash flow.
The lesson? It’s not just about how much you make. It’s about how much you keep and control.
When Profit Doesn’t Equal Peace
One business had grown fast, but when property values dropped, his bank called him with a harsh reality: his collateral had declined, and he owed more than his assets were worth. Despite being profitable, he was deep in debt and suddenly at risk.
But by tackling excessive receivables and cleaning up bad debt, his business turned around.
“He emailed me one day just one line: We’re celebrating being at zero on our credit line. It feels amazing.”
That emotional relief? Priceless.
The Triggers That Wake You Up
There are several scenarios that can push family business owners to rethink debt:
- Pressure from banks or creditors
- Unexpected inventory ballooning or supplier costs
- Generational transitions: not wanting to pass on a burden of debt
- Rising interest rates and tightening margins
In one case, a father realized he didn’t want his son to inherit a business burdened by $17 million in debt. His solution? Shift the mindset from leverage to legacy.
With Meridian’s guidance, they made strategic decisions selling unproductive assets, prioritizing high-margin work, and setting smart financial goals. And they did it without sacrificing growth.
The “True Cash” Method
One powerful concept Meridian teaches is real cash position – what you actually have after subtracting what you owe on your bank line.
If you’ve got $500K in the bank, but owe $1M on your line of credit, you’re not up, you’re $500K underwater.
This clarity helps owners make better decisions, control spending, and sleep easier at night. Whether it’s $500K or $17 million in debt, the pain is real. But so is the path out.
How Family Businesses Break Free
Meridian’s approach isn’t magic, it’s a method:
Inventory Control
- For one company, managing inventory across multiple warehouses created instant cash improvements and better margins.
Receivables & Billing
- Missed follow-ups or aging receivables can quietly choke cash flow. Identifying this early leads to faster fixes.
Supplier Management
- Better terms, clearer planning, and less panic equals more control.
Debt Reduction Planning
- By doubling mortgage payments, one owner added debt targets to his annual goals and shaved down millions over time.
It wasn’t about being anti-debt, it was about being in control.
Ready to Reclaim Your Cash Flow?
You don’t have to live in financial stress. You don’t have to normalize debt. And you don’t have to do it alone.
Whether you’re stuck on a line of credit, unsure where your cash is going, or preparing for a future transition, clarity is closer than you think.
Explore Meridian’s cash flow tools, connect with our family business experts, or access our members-only on-line training portal to start shifting your numbers in the right direction!
Connect with us for a personalized consultation at 817-594-0546. We’d love to hear your story.
