The Challenges of Cash Flow Assignment Example | Topics and Well Written Essays - 500 words

The Challenges of Cash Flow - Assignment ExampleThis will enable customers to berth payments and checks processed by the bank as quickly as possible. Companies should use one bank to rivet and easily manage their cash.Tightening credit requirements It is a marketing strategy to extend credit to customers to improver sales. Businesses often have to extend credit to customers, particularly when starting out or growing. Businesses should also stock-take individual customers to assess the risks related to selling to customers on credit. Additionally, companies should accept credit cards although it will perpetrate a small percentage of interest (Linzer, 2006).Increasing sales appendd sales would defiantly increase cash inflow. In order to achieve this objective, a company should sell more goods to existing customers and pass water new customers through advertisement of products and services (Jones, 2008).Pricing discounts discounts on accounts receivable motivate customers to p ay primeval in order to claim the discount offered. This will definitely improve cash inflow. However, this will crop the signs profit margin. A company may delay payments to the suppliers as a counteraction. This mustiness be done with a lot of precaution so as not to affect the libertines credit rating.Securing imparts bank overdraft or other short-term loans can also be apply to solve short-term cash flow problems (Linzer, 2006). A long-term amortized loan is also another representation to solve cash flow during financial difficulties but it should sum up principal and interest until the loan is finally settled.Set cash flow targets- proper cash flow projections will enable your firm to properly estimate and project the required cash flow. The use of cash flow analysis tools manage use of cash budget and projected cash flow statement are also stiff (Jones, 2008).Make payment by your customers as