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Financing CASH FLOW
Cash flow is the lifeblood of your business. Profit precedes cash. With insufficient cash flow your business will show signs of stress or struggle. Suppliers start to delay or withhold services, increased time is spent pacifying suppliers. Further still, your focus is taken from the business and is placed on survival. You may already know that your need help financing cash flow or unsure what you can borrow. CFO Evolve can assist with reviewing your business and guiding you through financing cash flow.
We offer the following solutions to financing cash flow requirements:
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Cash flow review and recommendations
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Cash flow forecasting as part of a 3 way forecasting model development
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Build the necessary paperwork to enable financing cash flow
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Business efficiency recommendations and build in financial processes to ensure your business grows
Financing Cash Flow in your Business
Financing Cash Flow Related Articles
Cash flow restrictions affect many small businesses from a rapid business growth period, cash burn rate being too high, seasonal sales, slow or long sales pipelines all hinder the growth and the cash flow availability with in your business.
CFO Evolve have helped a number of Australian businesses through financing cash flow, a cash flow shortage, cash flow forecasting requirements and streamlining business efficiencies to free cash flow.
Below are a few tips on how you can manage your cash flow better, however if you require assistance on gaining or preparing for financing cash flow please contact us to discuss our services further.
6 steps to ensure that your cash flow is better managed:
1. Keep your budgets, forecasts and accounts up to date.
This can be as simple as paying for a software to automate invoices and payment reminders. Also this should offer you a 'at a glance' view of your current position and current cash flow.
2. Manage your collections better.
Don't let too many invoices fall overdue, it may impact your cash flow more than your realise.
3. Manage your inventories.
Make sure that you are not sitting on too much prior to revenue / collections.
4. Don't mix your business and personal finances / assets.
Leveraging your successful business for personal cash flow to buy a car, boat - for example, might pose consequences down the track when you want grow via investment, loans or even sell your business.
5. Build a reserve tailored to the needs of your business.
This can be a cash reserve placed in a separate account, locked away for emergencies. If you are lucky enough not to be in business where reserves are required, it is still good practice to do this item such as tax.
6. Monitor and review frequently.
If all else fails, get a second opinion to review your accounts and your cash flow forecasts.
Preparing for a Business Loan? Read our 8 steps before you apply.
Obtaining a business loan or funding is a little like running a marathon – you need to be prepared!
Recession Proof your Business. Part 2 – Cash and Strategic Funding.
8 out of 10 businesses fail due to poor cash flows. As a downturn starts to bite, customers are slower in paying, cash reserves dissipate, you start to delay payments to suppliers in order to prioritise salaries.
How CFO Evolve helped an Australian Retailer with financing cash flow for business growth
A seasonal low-point at the end of the year, substantially increased inventories, tax liabilities due and payable and the need to pay increased salaries created a perfect storm of cash required.