5 ways to manage your company's cash flow
TRANSCRIPT
BUSINESS IS A BA LA NCE OF
SUSTE NANCE OF THE SE IN THE P ROP E R RATIO IS CRUCIAL FOR ANY E NTITY .
E XP E ND ITURE P ROFITS & RE VE NUE
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THE PROBLEM
THE MA JOR PROBLEMTIME DELAY BETWEEN PAYMENT TO SUPPLIERS AND EMPLOYEES , AND COLLECTION FROM VENDORS AND CUSTOMERS
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THE SOLUTION
CA SH F LOW MA NA GE ME NT
THE ONLY SOLUTION IS
HELPS INCONSISTE NT CASH FLOW
Creating a predictable futureFuture planningBudgetingReducing fixed capital
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THE SOLUTION
C A S H FLOW MA NA G EMENT5 WAYS TO MANAGE CASH FLOW
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THE SOLUTION
RE VIE W & FORE CAST
Good credit check on vendors or customersReview existing vendors and customersAnalysis of prompt & profitable customersAligning payment timings of important or early expenses or vendors with the prompt and profitable suppliers.
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5 WAYS TO MANAGE CASH FLOW
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SE LL INVOICE S
Form of short term borrowingAllows a business to draw money against its sales invoicesBefore the customer has actually paid Improve working capital and cash flow position
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5 WAYS TO MANAGE CASH FLOW
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OVE RD RAFT FACIL ITY
Short-term needs and emergencies with a line of credit, an effective way to manage the business Has associated hassles in case of delays Is an easy to avail option from banks
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5 WAYS TO MANAGE CASH FLOW
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RE NE GOTIATING CONTRACTS
Re-negotiating the terms of paymentReach out to vendors with whom you have a good rapportBe flexible while renegotiating
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5 WAYS TO MANAGE CASH FLOW
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INVE NTORY MANAGE ME NT
Avoid overstockingRegularly gauge inventory and salesStreamline a good model for future forecasting
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5 WAYS TO MANAGE CASH FLOW
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THA NK YOU!
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5 WAYS TO MANAGE CASH FLOW