Working Capital Management

As a business grows, all sorts of challenges present themselves and one of the most challenging that a business often faces, is that of ensuring there is sufficient working capital. You have built a solid customer base, turnover is increasing, and suppliers are on-stream. But there doesn’t seem to be much money in the bank and you are not able to take much money out of the business. Where is the money going? Are you doing as well as you expected?

Managing your cash resources and making sure you have enough to meet your needs – paying wages, buying supplies and meeting your personal financial requirements – is critical to the health of your business.

It is essential that you have the foundations to enable accurate cashflow forecasts to be prepared to manage your working capital requirements. Up-to-date records of your trading transactions will enable you to produce regular cashflow forecasts, which will in turn prepare you for potential problems ahead. Cashflow forecasts can highlight when your business might run low on cash, and can be the basis for an action plan to remedy the situation before it occurs. One of the major causes of cashflow problems is often actually a business that is doing well. If your sales are increasing, and you are having to fund increasing levels of bought in goods and wages before your customers pay you, cash could become a problem.

Inspired Business Vision will help you with cashflow management and can offer invaluable advice in the following areas:

  • Maximising receipts from customers.
  • Managing payment to suppliers. 
  • Capital expenditure decisions.
  • Improving your credit rating.
  • Alternative types of finance

Cash  is the life blood of an organisation, to get cash flowing properly into the organisation requires a specialist cash  management  function (which most small and medium businesses cannot justify on a full time basis) applying steady pressure on a daily basis.

We work with clients and as part of cash management advice will provide assistance in the following areas:

  • More aggressively follow up all debtors in the ledger – before they fall due, as they fall due and escalate if in arrears
  • Understand and resolve old issues which are holding up payments – all those little housekeeping issues which although small still hold up receipts
  • Reach agreement with HMRC and other key suppliers around payment plans – building trust and reliability, slowing payments without interrupting business relationships
  • Install a detailed cash management model and keep it up-to-date
  • Investigate alternative sources of funds

Contact Us now to see how we can help your business cash management and working capital requirements.


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