Understanding and managing the working capital cycle is key to allowing a company to plan for growth or take advantage of new sales opportunities without the risk of running short of cash in the short-term or stretching creditors and jeopardising valued supply chains. This is particularly important when scarcity of products makes a good relationship with the supply chain a key success factor for many businesses.
Detailed cash flow forecasting – which can mean a daily breakdown to capture spikes for payroll or batched payment runs – will demonstrate what the peak cash requirements are and when they occur. This will inform the choices for how best to fund working capital, such as with reserves, overdrafts or flexible funding – for example, invoice discounting and/or stock finance. It is an axiom of best practice that the short-term, fluctuating nature of working capital should be funded by short-term, flexible facilities.
Our team has extensive experience in the working capital environment and an excellent knowledge of the many and varied providers in the market and the products best suited to your business.
We can provide support through the modelling and evaluation phase, the assessment of options, and the evaluation of different proposals to enable you to make the most appropriate selection. We can then guide you through the legal and practical steps from agreeing the commercial deal to signing the financing agreement.
