Improving cash flow

  • Created by: steph
  • Created on: 26-03-13 21:05
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  • improving cash flow
    • causes of CF problems
      • overtrainding-when a business expands to quickly without organising funds to finance this.
      • Poor credit control-  CC ensures that customers keep to agreed borrowing limits and pay on time. can effect cash inflows.
      • Allowing too much trade credit- allowing customers between 30 an 90 days to pay
      • customer finances & behaviour
      • Changes in the market conditions
      • Using financial forecasts -
    • Monitoring cash flow
      • Unexected costs-
      • Inexperience
      • Inaccurate assumptions
    • Methods of improving cash -flow
      • improved control of working capital
      • Offer less trade credit
      • debt factoring
      • Arrange short- term borrowing
      • Sale and lease back
      • Negotiating improved trade crdit
    • CF and business proformance
      • Reduce borrowing costs
      • Good reations with suppliers - can offer discounts
      • Public Relations


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