Creative ways to manage finance
MITIGATE THE NEGATIVE IMPACT: OF DOWNGRADES AND A CHALLENGING ECONOMY
With the recession and downgrades, it is becoming imperative for businesses to look for innovative ways to manage their finances. To overcome the economic challenges, it is key to understand how your business and cash flow will be impacted by the recession and downgrades, so that you can plan ahead and implement measures that will ensure your business remains sustainable and survives in the tough economic climate. In such challenging economic times and in the face of these risks, businesses have little choice but to manage their cash flow and liquidity requirements better.
Having access to cash reserves is probably the best way to maximise liquidity, as the downgrades could mean that the cost of borrowing will become higher.
Another option of managing cash flow is through debtor management, which allows businesses to receive funds quickly and extend creditors’ payment terms.
And yet another way of improving your cash flow is creating savings, which is really about optimising what is already in the business, for example being more efficient and therefore your overall interest rates would be lower.
Gone are the days when it was “business as usual”. Businesses will have to tap into the latest available technology and data to become more efficient and equipped to ride out the economic storm.
Gone are the days when it was ‘business as usual’. Businesses will have to tap into the latest available technology and data to become more efficient and equipped to ride out the economic storm.
David McCall