Cash Flow Improvement

Cash Flow Improvement

Concerns:

  • “I am the last to be paid even though we are profitable.”
  • “Cash is always or periodically very tight.”

Solutions:

  • Implement a rolling cash flow forecast.
  • Ensure monthly or more frequent reviews of accounts receivable outstandings, with clear targets for average days outstanding and tactics for collection.
  • Review other working capital, including inventory.
  • Review the use of technology to improve and accelerate cash flow.
  • Review payment structure to see if some goods/services can be sold on a prepaid basis.
  • Review and implement financing options.