The effective management of cash flow is essential for any successful business to survive, especially in the current economic environment. It provides a business with the funding it needs to run its day to day operations and help protect it against unplanned expenses.
An additional tool available to entrepreneurs requires them to perform a detail assessment of the different expense lines in their business and identify where they can limit the outflow of funds. Through implementing the necessary measures to achieve this, it would then enable a business to deploy the funds elsewhere in the business where they are needed most such as salaries or utilising supplier settlement discounts.
3. Inventory/ Fuel expenses – On origination placing a deposit with a supplier as security for non-payment of trading account.