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UNIT 2 ­ Managing a business
Finance Revision notes
IMPROVING CASH FLOW

What needs to be known for this topic:
Understand the causes of cash flow
Be able to recommend ways of improving cash flow

Page | 1
Cash flow: The amounts of money flowing into and
out of a…

Page 2

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UNIT 2 ­ Managing a business
Finance Revision notes

Factoring (debt factoring): When a factoring
company (usually a bank) buys the right to collect the money from the credit
sales of an organisation.
Benefit Drawback
Page | 2 Improved cash flow in the short term Loss of revenue
Lower administration…

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