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
- causes of CF problems
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