Cash Management

In uncertain credit environments, businesses gain a competitive edge through effective cash management. The goal is to leverage the most cost-effective source of working capital: cash on the balance sheet. 

Cash management strategies typically address three key areas: cash in, cash out, and inventory. By optimising these elements, BTG Advisory can help businesses enhance cash flows, bolster operational stability, and increase profit.

Integrated cash flow forecasting is essential. Our 13-week rolling cash flow forecasts, integrated with budgets, highlight anomalies and facilitate proactive decision-making. We analyse customer terms, anticipated receipts, and explore opportunities like discounting and invoice financing to expedite cash inflows, manage drawdowns and address shortfalls effectively. On the supply side, renegotiating terms with key suppliers and exploring alternative supply options mitigate concentration risk. Early payment discounts and thorough analysis of recurring payments yield immediate cash savings. Debt restructuring may offer additional benefits.

While different cash management approaches entail trade-offs, understanding their consequences is crucial. We compare actuals to forecasts regularly, enabling informed decision-making. Ultimately, management retains final decision-making, with our support and expertise at every stage.