Bus 2.2 improving cashflow
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- Created on: 17-02-14 11:06
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- 2.2 Improving Cashflow
- Cashflow
- The amounts of money flowing into and out of a business over a certain period of time.
- Ways of improving cashflow problems
- Increase cash inflows
- Short term loan- a sum of money provided to a firm or an individual for a specific agreed purpose, repayment is usually less than 2 years
- Factoring- a factoring company (usually a bank) buys the right to collect credit sales from an organistion
- Leaseback of sale assets-when assets that are owned by the business are sold to raise cash and then rented back so the company can still use them for an agreed period of time
- Increase cash inflows
- Cashflow
- Causes of cash flow problems
- Cashflow
- The amounts of money flowing into and out of a business over a certain period of time.
- Cashflow
- Lack of planning
- Causes of cash flow problems
- Causes of cash flow problems
- Poor credit control-customers are not paying on time
- Allowing customers to long to pay debts
- Seasonal demand and unexpected changes/events
- Overdraft- an agreement with the bank allowing a business to withdraw more money than is in its account up to an agreed limit
- Increase cash inflows
- Short term loan- a sum of money provided to a firm or an individual for a specific agreed purpose, repayment is usually less than 2 years
- Factoring- a factoring company (usually a bank) buys the right to collect credit sales from an organistion
- Leaseback of sale assets-when assets that are owned by the business are sold to raise cash and then rented back so the company can still use them for an agreed period of time
- Increase cash inflows
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