The world leading software provider, SAP, recently published an Executive Insight entitled: Managing Cash Flow in Times of Crisis – Solutions for Improving Cash and Liquidity Management. The factoring specialists at PRN Funding wanted to share some of the more pertinent parts of the paper with The Factoring Blog’s readership. For your convenience, we’ve included a summary below:
In all, the article stressed three main points in order to maintain a healthy bottom line during difficult credit times:
- Ensure healthy cash flows.
SAC advised business owners to check their customers’ credit prior to doing business, and then to continually monitor the credit throughout the relationship. Moreover, SAC also explained how important it is for business owners to stay on top of outstanding invoices, making it a priority to follow-up on disputes and general collections.
The healthcare factoring specialists at PRN Funding provide extensive debtor credit reviews as part of our services. In addition, each of our clients is assigned to one account manager who handles the collections process and follows-up on aging invoices.
- Gain greater viability into the sources and uses of your cash.
SAP recommended that business owners wrap their arms around the “entire financial value chain.” In a nutshell, SAP recommended that owners have a firm grasp on the inflows and outflows of their company’s cash. Make note of certain times when receivables start to age a little more or when business orders jump. The preparation will help you forecast for the future.
The account managers at PRN Funding actively monitor the strength of their clients’ business operations, holding upper-level management meetings monthly to discuss trends. Any information that is uncovered during those meetings is also brought to the client’s attention.
- Increase control over cash on hand.
SAP’s advice at this level is for business owners to gain real-time visibility. SAP stressed how important it is to be able to monitor cash flow levels on a daily basis.
PRN Funding’s factoring specialists helps in this area as well, providing secure access to real-time reporting system via our company’s web site. PRN Funding’s healthcare factoring clients have the ability to log-in and run reports 24/7/365.