Cash Flow Forecasting – Unpredictable Cash Flow

Posted by Aaron Zahedani on Fri, Sep 27, 2013 @ 07:40 AM

We have written previously about the importance of creating a cash flow forecast, and regularly checking your cash flow. Forecasting as accurately as possible makes developing and running a business much easier. It is, however, hard to prepare a cash flow forecast when your cash flow is not predictable.  

The reasons behind your unpredictable cash flow need to be identified in order to find a workable solution.   

  • Isolate your unpredictable cash flow

  • Identify constant cash flow

There are many reasons for unpredictable cash flow, and once you are aware in advance that you are entering a period of slow payment, you can work out a method to rectify the situation. Many periods of uncertainty are particularly relevant to certain markets.  

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Topics: Manufacturing and Distribution Financing, Cash Flow, Trucking Factoring, About Invoice Factoring

Is Invoice Factoring an Option for Manufacturing Companies?

Posted by Aaron Zahedani on Wed, Sep 25, 2013 @ 07:45 AM

So how can invoice factoring accounts receivables really help manufacturers? Why is it a great solution?  

The obvious answer is that manufacturers require consistent working capital. This is not always possible with late payers, which is where factoring your invoices can eliminate the time period between invoicing and payment.   

So we understand factoring, but let’s examine in more depth why this is such a viable option. There is no doubt that although many manufacturers survived the worst of the recession, times have been tough. Cash flow problems were caused by:  

  • Customers making late payments

  • Suppliers wanting to be paid more quickly

  • Large customers extending terms of payment

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Topics: Alternative Financing, Manufacturing and Distribution Financing, How to Grow Your Business, The Benefits of Invoice Factoring, About Invoice Factoring

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